How many countries are members of NDB?

ApproacH IAS December 01, 2024

As of 2024, the New Development Bank (NDB), also known as the BRICS Bank, has a membership that includes 9 countries: the five BRICS nations (Brazil, Russia, India, China, and South Africa) and four other countries that were invited to join later. These countries are:

new development bank ndb


1. BRICS Member Countries (Founding Members)

The NDB was initially created by the five BRICS countries, which form the core of the bank's membership:

  1. Brazil
    • Population: Over 213 million (2023 estimate)
    • Economy: Brazil is the largest economy in Latin America, with significant resources in agriculture, mining, and energy. The country has a diversified economy and is a key player in global trade and investment.
    • Role in NDB: Brazil, as a founding member of the NDB, is instrumental in shaping the bank's policies and priorities, particularly in Latin America.
  2. Russia
    • Population: Over 144 million (2023 estimate)
    • Economy: Russia is one of the world's largest economies, primarily driven by its natural resources such as oil, natural gas, and minerals. It also has a well-developed industrial base.
    • Role in NDB: Russia plays a significant role in the NDB’s strategic initiatives, focusing on infrastructure development and energy projects, both within the BRICS countries and in other emerging economies.
  3. India
    • Population: Over 1.4 billion (2023 estimate)
    • Economy: India is the world's fifth-largest economy and a major driver of growth in Asia. Its economy is diverse, with strong sectors in services, information technology, and manufacturing.
    • Role in NDB: India has a central role in the NDB’s governance and financing efforts, particularly in sectors like renewable energy, technology, and rural infrastructure.
  4. China
    • Population: Over 1.4 billion (2023 estimate)
    • Economy: China is the second-largest economy globally, known for its manufacturing sector, rapid technological advancements, and export-driven growth. It also has a growing service sector.
    • Role in NDB: As the largest economy in BRICS, China plays a crucial role in the NDB’s financing activities, contributing to the bank’s capital and participating in significant infrastructure and development projects.
  5. South Africa
    • Population: Over 60 million (2023 estimate)
    • Economy: South Africa has the most developed economy in Africa, with strengths in mining, agriculture, and manufacturing. It serves as a key economic hub on the African continent.
    • Role in NDB: South Africa’s membership in the NDB reflects the bank’s commitment to supporting development across the African continent. The country helps to align NDB’s operations with Africa's infrastructure needs.

2. New Member Countries (Expansion)

In 2021, the NDB expanded its membership by adding new countries beyond the BRICS bloc. These countries represent a diverse set of emerging and developing economies that align with the NDB’s mission of promoting infrastructure and sustainable development. As of 2024, these new members are:

  1. Bangladesh
    • Population: Over 170 million (2023 estimate)
    • Economy: Bangladesh has a rapidly growing economy, primarily driven by textiles, agriculture, and remittances. It is one of the world's largest exporters of garments.
    • Role in NDB: Bangladesh's membership in the NDB provides access to financing for infrastructure development, particularly in sectors like transportation, energy, and rural development.
  2. Egypt
    • Population: Over 106 million (2023 estimate)
    • Economy: Egypt has a mixed economy, with significant contributions from agriculture, tourism, and energy, particularly natural gas. The country is also a regional economic hub in the Middle East and North Africa (MENA) region.
    • Role in NDB: Egypt’s membership strengthens the NDB’s presence in the MENA region and enhances cooperation in infrastructure projects, especially in the context of Egypt's ongoing modernization and development efforts.
  3. United Arab Emirates (UAE)
    • Population: Over 9 million (2023 estimate)
    • Economy: The UAE has a highly developed, oil-driven economy, with strong sectors in tourism, finance, real estate, and infrastructure development. It is a global business hub.
    • Role in NDB: The UAE’s membership brings significant financial resources and expertise to the NDB, especially in areas such as sustainable development, infrastructure, and technology.
  4. Uruguay
    • Population: Over 3.5 million (2023 estimate)
    • Economy: Uruguay has a small but open economy, with key sectors in agriculture, food exports, and services. It is one of the most developed nations in South America.
    • Role in NDB: Uruguay’s membership strengthens the NDB’s engagement in South America, particularly in agriculture, sustainable energy, and infrastructure projects.

3. Membership Expansion Process

The expansion of the NDB to include these countries follows a growing recognition of the need for increased financial cooperation between developing nations, particularly for funding infrastructure and sustainable development projects. The membership process is driven by the bank’s desire to:

  • Increase global representation: By welcoming countries from various continents, the NDB aims to expand its influence and better represent the Global South in the global financial system.
  • Strengthen South-South cooperation: The NDB encourages collaboration among emerging economies to address common challenges, share knowledge, and pool resources for development projects.
  • Foster inclusivity in financing: With new members, the bank can address the development needs of a broader range of countries, especially in regions like Africa, Latin America, and the Middle East.

The NDB’s governance framework allows for new members to join through the approval of the Board of Governors, and this expansion is expected to continue in the future, with other emerging and developing nations being invited to join.

4. Benefits of Membership

Membership in the NDB offers several benefits to countries, especially those in emerging economies:

  1. Access to Financing: NDB provides member countries with financing for infrastructure projects, which are crucial for long-term economic growth. The bank offers competitive interest rates, long-term financing, and flexible lending terms.
  2. Development Support: The NDB’s focus on sustainable development means that member countries have access to funding for projects that contribute to poverty reduction, environmental sustainability, and social equity.
  3. Increased Influence: As a member of the NDB, countries can influence global economic governance, challenging the dominance of traditional Western financial institutions.
  4. Partnership Opportunities: Membership also provides countries with the opportunity to collaborate with other emerging economies on infrastructure projects, trade, and investment.
  5. Co-Financing Options: The NDB often co-finances projects with other development banks and private investors, which helps to leverage more resources for large-scale infrastructure projects.

5. Impact of NDB Membership

The NDB’s expanding membership has a profound impact on the development of member countries:

  • Infrastructure Growth: NDB financing is directed towards critical infrastructure such as roads, bridges, ports, and energy plants, which can significantly boost a country’s economic development.
  • Promotion of Green Development: Many of the projects financed by the NDB focus on renewable energy, environmental conservation, and sustainable development practices, aligning with the global push for climate action.
  • Regional Cooperation: Through the NDB, member countries can collaborate more effectively, sharing expertise and resources to solve regional development challenges.
  • Improved Global Standing: The NDB gives member countries a platform to shape global financial policies and advocate for their development priorities on the international stage.

6. Future Expansion Plans

The NDB’s expansion strategy is expected to continue as the bank seeks to increase its global footprint and further strengthen South-South cooperation. New members are likely to be added in the future, with a focus on countries in regions such as:

  • Africa: The NDB is increasingly focused on African development, where infrastructure needs are particularly acute. Countries like Nigeria, Kenya, and Egypt are potential candidates for future membership.
  • Asia and the Pacific: Countries in Southeast Asia and the Pacific, which have rapidly growing economies and significant infrastructure needs, may also be invited to join the bank.
  • Latin America: Other countries in Latin America may join the NDB as part of the bank’s broader strategy to support development across the region.

The NDB’s growth in terms of membership reflects its commitment to providing alternative sources of financing to emerging and developing economies, empowering them to meet their development challenges without relying on traditional Western financial institutions.

Conclusion

The New Development Bank (NDB) currently has 9 member countries, with the five founding BRICS nations and four other countries that joined the bank in 2021. This diverse membership reflects the NDB’s commitment to promoting infrastructure and sustainable development across the Global South. Through its expanded membership, the NDB has become a key player in the international financial system, providing vital funding to emerging economies and promoting cooperation among developing nations. The bank’s future expansion plans suggest that it will continue to play an important role in shaping global development and infrastructure financing.

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