Functions of new development bank

The New Development Bank (NDB) is a multilateral development bank established by the BRICS countries (Brazil, Russia, India, China, and South Africa) in 2014. The bank's primary objective is to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies. The NDB has several key functions:

  1. Financing Infrastructure Projects: The NDB provides financing for infrastructure projects in areas such as transportation, energy, telecommunications, and urban development.
  2. Promoting Sustainable Development: The bank focuses on promoting sustainable development by financing projects that have a positive impact on the environment, social welfare, and economic growth.
  3. Supporting Regional Integration: The NDB aims to support regional integration by financing projects that promote economic cooperation and integration among BRICS countries and other emerging economies.
  4. Providing Technical Assistance: The bank provides technical assistance to its member countries to help them develop their infrastructure and sustainable development projects.
  5. Mobilizing Private Sector Financing: The NDB works to mobilize private sector financing for infrastructure projects by providing guarantees, risk management services, and other forms of support.
  6. Fostering Public-Private Partnerships: The bank encourages public-private partnerships (PPPs) to leverage private sector expertise and financing for infrastructure projects.
  7. Supporting Small and Medium-Sized Enterprises (SMEs): The NDB provides financing and other forms of support to SMEs, which are critical to economic growth and job creation in emerging economies.
  8. Promoting Regional Currency Settlements: The bank promotes regional currency settlements to reduce dependence on the US dollar and other foreign currencies, and to promote financial stability in the region.
  9. Providing Disaster Risk Financing: The NDB provides disaster risk financing to its member countries to help them prepare for and respond to natural disasters.
  10. Fostering Knowledge Sharing: The bank fosters knowledge sharing among its member countries and with other international organizations to promote best practices in infrastructure development and sustainable development.
  11. Supporting Climate Change Mitigation and Adaptation: The NDB provides financing and other forms of support to projects that promote climate change mitigation and adaptation in BRICS and other emerging economies.
  12. Promoting Financial Inclusion: The bank promotes financial inclusion by providing financing and other forms of support to projects that promote access to financial services for low-income households and small businesses.

Overall, the New Development Bank plays a critical role in promoting sustainable development, infrastructure development, and regional integration in BRICS and other emerging economies.