BRICS BANK By:Pratyush KumarNabeel KhanPrashant Kumar ChourasiyaMohamad Anas

BRIEF• The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa) as an alternative to the existing American and European-dominated World Bank and International Monetary Fund.•Each participant country holds an equal number of shares and equal voting rights, and none of the countries will have veto power.• BRICS states have 40% of the world’s population, 20% of the world’s coverage and $18.486 trillion of combined GDP.

HEADQUARTER, MANAGEMENT AND ORGANISATION• The bank is headquartered in Shanghai, China.• The Bank shall have a Board of Governors, a Board of Directors, a President and Vice-Presidents. The President of the Bank shall be elected from one of the founding members on a rotational basis, and there shall be at least one Vice President from each of the other founding members.• The first president will be from India, the inaugural Chairman of the Board of directors will come from Brazil and the inaugural chairman of the Board of Governors will be Russian.

HISTORY• The idea for setting up the bank was proposed by India at the 4th BRICS summit in 2012 held in Delhi.• BRICS leaders agreed to set up a Development bank at the 5th BRICS summit held in Durban, South Africa on 27 March 2013.• On 15 July 2014, the first day of the 6th BRICS summit held in Fortaleza, Brazil, the BRICS states signed the Agreement on the New Development Bank.• The 7th BRICS summit in July 2015 marked the entry into force of the Agreement. On 11 May 2015, K. V. Kamath was appointed as President of the Bank.

OBJECTIVES• To utilize resources at its disposal to support infrastructure and sustainable development projects, public or private, in the BRICS and other emerging market economies and developing countries.• The Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments. It shall also cooperate with international organizations and other financial entities.• To provide technical assistance for the preparation and implementation of infrastructure and sustainable development projects to be supported by the Bank.• The Bank will be an additional source of long term finance for infrastructure projects in India.

MEMBERSHIP, VOTING, CAPITAL AND SHARES• The founding members of the Bank are the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China and the Republic of South Africa. • The membership shall be open to members of the United Nations, in accordance with the provisions of the Articles of Agreement of the New Development Bank. It shall be open to borrowing and non-borrowing members. • The New Development Bank shall have an initial subscribed capital of US$ 50 billion and an initial authorized capital of US$ 100 billion. The initial subscribed capital shall be equally distributed amongst the founding members. The voting power of each member shall equal its subscribed shares in the capital stock of the Bank.

SHARE-HOLDING STRUCTURE

PROBLEM ANALYSIS• BRICS countries are taken world 40% population.• Global financial crisis.•Risk of economic fallout.• Big role of the dollar in trade.• Declining GDP growth rate.

MARKET ANALYSIS• GDP growth rate in BRICS nations is higher then the developing nations• Big players in FDI.• Massive marketing opportunities.• Service sector contribution.• Using human resources .

BENEFITS

•It will lessen dependence on the World Bank and IMF.• Reliable financial source.• Huge investments in infrastructure • One country one vote.• strengthen financial stability and stabilise domestic currency

SWOT ANALYSISStrength :• To get cost advantages• To use resources• Market opportunities• Economic developmentsWeakness :• Population problem• lack of Infrastructure• Decreasing GDP growth rate

SWOT ANALYSISOpportunities :• To expand the market• To using the regional development• Monetary resourcesThreats :• Financial crises• Threats from other unions• Dollar role

CONCLUSION• BRICS nations have the potential and the resources to form a powerful economy with greater opportunity’s than any other nation.• The Modi-Government has to ensure that the Development Bank gets operationalised soon as funding other develop economies will increase India’s global clout.• A stronger BRICS can also have more influence in other multilateral forums such as the World Trade Organisation and the Climate Change convention.

REFERENCES• https://en.wikipedia.org/wiki/New_Development_Bank• http://pib.nic.in/newsite/PrintRelease.aspx?relid=107882• http://indianexpress.com/article/india/politics/brics-summit-pm-modi-to-push-for-new-development-bank-in-new-delhi/• http://www.slideshare.net/rsinhal/brics-nations-future-bank?related=1• http://www.slideshare.net/rsinhal/brics-nations-future-bank