18 June 2016

South Africa: The New Development Bank: Moving the BRICS from an Acronym to an Institution


PDF Download - English (704 KB)

Economic Diplomacy Programme

The BRICS New Development Bank (NDB) is set to issue its first loans in the second quarter of 2016. The bank, the latest addition to the global development finance landscape, was initiated due to a number of factors in emerging economies.

One of the key issues that emerging economies, including the BRICS group, struggle with is the slow pace of reform in existing global financial institutions to better reflect the current political and economic realities (which in some cases deviate significantly from when these organisations were created in the post-Second World War era). Emerging economies also suffer from serious infrastructure funding deficits, which can be addressed by drawing on the significant domestic savings across developing countries.

The NDB was thus born partly as a result of these factors. Since its conception in 2011 the bank has begun taking form, including finalising legal arrangements, assigning different roles and responsibilities among the five founding BRICS members, and setting up an office.

Ahead of the extension of its first loans, some details have emerged on the bank's operations. This paper tracks the historical development of the NDB, investigates modalities around its operations, and looks towards the likely impact it will have in the development finance milieu.

South Africa

Henri van Breda to Hear Judgment Today

The Western Cape High Court is on Monday expected to deliver judgment in the case of triple murder accused Henri van… Read more »

See What Everyone is Watching

Copyright © 2016 South African Institute of International Affairs. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.