brics-insights-2-0679104b7cb4aa9c.pdf

This research paper by Zhu Jiejin discusses the establishment and strategic role of the BRICS New Development Bank (NDB) as a mechanism for new South–South co-operation. The author argues that the NDB is designed to address the significant infrastructure financing gaps in developing countries and to supplement, rather than replace, existing multilateral development institutions. The paper proposes five guiding principles for the NDB's institutional design: fair governance, market-based operation, non-intervention with high standards, localisation, and constructive supplement.

• The NDB is established to address a massive infrastructure financing gap in developing countries, which has worsened since the 2008 global financial crisis. According to the G24, developing countries have annual capital needs of $1,800 billion for infrastructure, but only receive about $800 billion, leaving an annual gap of approximately $1,000 billion. Additionally, South African President Jacob Zuma stated in 2013 that the financing gap for BRICS countries over the following five years would be $4,500 billion.
• The NDB is positioned as a tool for 'new South–South co-operation,' which aims to establish a new international economic system belonging to developing countries. This differs from traditional South–South co-operation, which focused on reforming existing international mechanisms; the NDB represents 'mechanism establishment' to supplement and complete the previous economic system.
• The NDB differs from traditional multilateral development banks, such as the World Bank and the Asian Development Bank, in three primary ways: its financing sources (coming from major developing economies), its financing fields (focusing on infrastructure rather than primarily on poverty reduction), and its financing mechanisms (emphasizing equal partnerships and market-oriented operations over the donor-recipient model and rigorous loan conditions).
• A core innovation of the NDB's governance is the principle of fairness, where stock rights are divided equally among the BRICS countries. This structure deliberately delinks voting or stock power from the proportion of a member country's GDP relative to global GDP, serving as an attempt to democratise international finance.
• The author recommends that the NDB adopt a market-based operation model to avoid politicisation. This approach would allow the bank to diversify capital sources beyond BRICS governments, utilize modern corporate governance structures like a board of supervisors, and attract international talent through market-based recruiting.
• Regarding loan conditions, the author suggests a balance of non-intervention and high standards. While the NDB should respect the development paths of borrowing countries to ensure policy space, it must include strict and feasible safeguard clauses to prevent corruption, waste, and violations of international environmental and human rights standards.
• The NDB is intended to be a 'constructive supplement' to the existing international development financing system. The author suggests that the NDB and the World Bank could co-operate through co-financing specific projects and sharing experiences to better meet the needs of developing countries.

APA

South African Institute of International Affairs (n.d.). brics-insights-2-0679104b7cb4aa9c.pdf. https://saiia.org.za/wp-content/uploads/2015/03/BRICS-Insights-2.pdf

Chicago

South African Institute of International Affairs. brics-insights-2-0679104b7cb4aa9c.pdf. n.d. https://saiia.org.za/wp-content/uploads/2015/03/BRICS-Insights-2.pdf.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=brics-insights-2-0679104b7cb4aa9c.pdf |url=https://saiia.org.za/wp-content/uploads/2015/03/BRICS-Insights-2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairsndbricsinsights20679104b7cb4aa9cpdf, author = {{South African Institute of International Affairs}}, title = {{brics-insights-2-0679104b7cb4aa9c.pdf}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2015/03/BRICS-Insights-2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }