Uzbekistan Becomes 10th Member of New Development Bank

Uzbekistan Becomes 10th Member of New Development Bank

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Why in News

  • Uzbekistan has officially become the 10th member of the New Development Bank (NDB).
  • This makes Uzbekistan the first country from Central Asia to join this BRICS-led multilateral financial institution.

New Development Bank Basics

  • The NDB is a multilateral development bank set up together by the BRICS states which include Brazil, Russia, India, China, and South Africa.
  • Leaders agreed to create the bank during the 6th BRICS Summit held in Fortaleza, Brazil (2014), and it started working fully in 2015.
  • The bank started with an initial authorized capital of USD 100 billion.
  • The initial subscribed capital was fixed at USD 50 billion, shared equally among the five founding members.
  • The headquarters of the bank is located in Shanghai, China.

Objectives and Voting System

  • The main goal of the bank is to raise funds for infrastructure and sustainable development projects in BRICS countries, other emerging markets, and developing nations.
  • Unlike the World Bank, voting power in the NDB does not depend on how much capital a country contributes.
  • Each member has one vote, and no single country holds a veto power.
  • However, the combined voting share of the founding BRICS members can never fall below 55%.

Membership Expansion and Global Reach

  • According to the NDB Articles of Agreement, any member country of the United Nations can join the bank.
  • The bank started expanding its membership in 2021 to grow beyond the original five countries.
  • The current list of members includes the original BRICS nations along with Bangladesh (2021), United Arab Emirates (2021), Egypt (2023), Algeria (2025), and Uzbekistan (2026).
  • Uruguay, Colombia, and Ethiopia have received approval from the NDB Board of Governors and will become official members after submitting their accession documents.
  • The current members of the NDB represent 42% of world population, 27% of the global surface area, and account for over 20% of the Global GDP.
  • This expansion strengthens the position of the NDB as a strong voice for the Global South.
  • It also helps BRICS efforts to encourage financing in local currencies and lower reliance on the US dollar.

India and Central Asia

  • India is a founding member of both BRICS and the NDB, and it welcomes the entry of Uzbekistan.
  • This development fits very well with India's diplomatic Connect Central Asia Policy.