The Way Forward for the BRICS New Development Bank

The research paper examines the establishment of the BRICS New Development Bank (NDB), arguing that a democratic governance model with equal contributions of USD$ 10 billion per member is preferable to a weighted system. It suggests the bank should focus on infrastructure and sustainable development, potentially extending investments beyond the BRICS nations to less developed states in Africa, Latin America, and East Asia. The author advises against the premature adoption of a BRICS-specific currency, recommending the use of recognized global standards for transactions.

• The NDB is likely to adopt a democratic governance structure with an initial capitalization of USD$ 50 billion, consisting of equal contributions of USD$ 10 billion from each of the five member countries, despite China's preference for a USD$ 100 billion fund with a larger share from China.
• A democratic model for the NDB is advocated because it avoids the unequal voting power seen in Bretton Woods Institutions like the IMF and World Bank, and it simplifies the process for other emerging countries, such as Turkey or Indonesia, to join the bank.
• While infrastructure development is the primary expected focus, the NDB may also address sustainable development, which could include green energy and small business development, similar to the focus of Brazil's BNDES on MSME development.
• The author argues that the NDB should invest in less developed states in Africa, Latin America, and East Asia rather than focusing solely on domestic BRICS needs, as these regions offer higher returns and less competition than the existing domestic projects within the BRICS countries.
• Despite China's ambition for the Yuan Renminbi to become a global reserve currency, the document suggests that using a BRICS currency for NDB transactions is currently premature and that the bank should stick to recognized global standards.

APA

South African Institute of International Affairs (2014). The Way Forward for the BRICS New Development Bank. https://saiia.org.za/research/the-way-forward-for-the-brics-new-development-bank/

Chicago

South African Institute of International Affairs. The Way Forward for the BRICS New Development Bank. 2014. https://saiia.org.za/research/the-way-forward-for-the-brics-new-development-bank/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=The Way Forward for the BRICS New Development Bank |date=18 March 2014 |url=https://saiia.org.za/research/the-way-forward-for-the-brics-new-development-bank/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2014way, author = {{South African Institute of International Affairs}}, title = {{The Way Forward for the BRICS New Development Bank}}, institution = {South African Institute of International Affairs}, year = {2014}, month = mar, url = {https://saiia.org.za/research/the-way-forward-for-the-brics-new-development-bank/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }