21 July 2015: The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, a multilateral development bank (MDB) operated by the BRICS group of countries (Brazil, the Russian Federation, India, China and South Africa), has begun its operations. The NDB will be headquartered in Shanghai, China, and each country will be assigned one vote, while no country will hold veto power.

Speaking on the occasion of the NDB’s launch, World Bank Group (WBG) President Jim Yong Kim noted that the NDB is one of a growing number of multilateral institutions, including the Asian Infrastructure Investment Bank (AIIB), that aim to address global infrastructure needs, given that emerging markets and low-income countries face an annual gap of US$1-1.5 trillion in infrastructure spending.

Kim indicated the willingness of the WBG to share its knowledge and to co-finance infrastructure projects with the NDB. He underscored that such partnerships will be critical to ending extreme poverty by 2030, boosting shared prosperity and reducing inequalities.

Asian Development Bank (ADB) President Takehiko Nakao also suggested possible co-financing for infrastructure and projects that promote sustainable development in Asia and the Pacific.

The NDB was created by the BRICS as an alternative to the World Bank and the International Monetary Fund (IMF), and aims to foster greater financial and development cooperation among the five countries. Unlike the NDB, the World Bank assigns votes based on capital share. K.V. Kamath of India will serve as the first NDB President. [World Bank Press Release] [ADB Press Release] [NDB Website]