Q. Consider the following statements :
- New Development Bank has been set up by APEC.
- The headquarters of New Development Bank is in Shanghai.
Which of the statements given above is/are correct? (UPSC Prelims 2016)
Answer:
2 only
Notes: The correct answer is
[B] 2 only. The New Development Bank (NDB) is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China, and South Africa).
- Origin and Setting Up (Statement 1 – Incorrect): The NDB was formerly referred to as the "BRICS Development Bank." It was established during the 6th BRICS Summit in Fortaleza, Brazil (2014), following the signing of the Agreement on the New Development Bank. APEC (Asia-Pacific Economic Cooperation) is a separate regional economic forum and was not involved in setting up this bank.
- Headquarters (Statement 2 – Correct): The headquarters of the New Development Bank is located in Shanghai, China. Its first regional office, the Africa Regional Center, was opened in Johannesburg, South Africa.
- Purpose: The bank was created to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions.
- Leadership: The first President of the NDB was K.V. Kamath from India. The bank operates on a consultative mechanism where each founding member has an equal share and equal voting rights, ensuring no single country has veto power.