By Pathik Hasan
Bangladesh has joined the New Development Bank (NDB) as a new member. The country has recently submitted the Instrument of Accession to the Brazilian government.
Earlier, on August 20, 2021, Bangladesh was listed in the NDBA Board of Governors meeting. In 2015, BRICS (Brazil, Russia, India, China and South Africa) established the NDB.
Following this, on 18 September, Bangladesh submitted its Instrument of Accession to the Government of Brazil, which confirmed Bangladesh’s accession to the Bank.
In a press release issued by the Finance Ministry today, NDB President Marcos Trojo warmly congratulated Bangladesh Finance Minister AHM Mostafa Kamal on the latest situation.
This is the first time that a country outside the BRICS countries has joined the NDB through the inclusion of Bangladesh. Referring to the unprecedented development of Bangladesh over the past decade under the dynamic leadership of Prime Minister Sheikh Hasina, the finance minister said the demand for foreign aid has increased along with the development of the country.
Kamal expressed hope that Bangladesh’s inclusion in the NDB would benefit both sides.
Since its inception six years ago, the NDB has approved about 70 projects in member states with a total portfolio of 30 billion. The bank mainly provides loans for projects related to transport, water and sewerage, renewable energy, digital infrastructure, social infrastructure and urban development.
The authorized capital of the NDB is 100 billion US Dollar and any member state of the United Nations can apply for membership in the bank.
Marcos Trio, President of the BRICS Bank has already welcomed Bangladesh to the New Development Bank
The message came congratulating Bangladesh Finance Minister AHM Mustafa Kamal as the new member state, the finance ministry said in a press release recently.
After the formalities, Bangladesh has become a member of the BRICS alliance comprising Brazil, Russia, India, China and South Africa.
According to a press release issued by the Ministry of Finance, the meeting of the Board of Governors of the NDB on August 20 approved the joining of Bangladesh as a new member state.
In that context, as per the rules of the bank, when Bangladesh submitted the Instrument of Accession to the Brazilian government on September 16, 2021. Bangladesh’s joining the bank was confirmed from that day.
This is the first time that a country outside the BRICS alliance has become a member of the multinational bank, which was set up in 2015 with the confirmation of Bangladesh’s participation.
Bangladesh is a new member of the New Development Bank
What is the benefit of joining BRICS Bank?
The Finance Minister said, “Along with the development of Bangladesh, the demand for foreign aid is also increasing. In this context, Bangladesh’s joining the New Development Bank will be beneficial for both.”
The Finance Minister hoped that the financing of the New Development Bank would play an important role in making development sustainable and making Bangladesh a prosperous country by 2041.
Since its inception, the New Development Bank has provided about 30 billion in loan assistance to member states for 70 different projects related to physical and social infrastructure and urban development.
Bangladesh’s accession was discussed at the outset of the New Development Bank (NDB). At that time, the government attached more importance to joining the Asian Infrastructure Investment Bank (AIIB) proposed by China.
Prime Minister Sheikh Hasina responded positively when BRICS member state Indian Prime Minister Narendra Modi invited Bangladesh to join the New Development Bank at a virtual summit in December last year. After that the journey started on the way to join the bank.
According to Bangladeshi media outlets, Bangladesh will be completely out of the low-income country in 2024. After that, Bangladesh will be recognized as a developing country by various donor agencies around the world. Then other benefits including foreign loans will be limited at its own expense. If it has become a member of NDB now, it can get low-cost loan later.
It is good news that Bangladesh has become a member of the New Development Bank. It is not yet known whether Bangladesh will have a representative on its board of directors. Bangladesh has an alternate executive director on the board of directors of the Asian Development Bank. Getting a loan will benefit us in the future. However, Bangladesh has a reputation as a record of loan repayments to donor agencies. Now more benefits will be added.
It is learned that the idea of setting up a title bank was proposed at the 4th BRICS conference held in Delhi in 2012. The main topic of the meeting was the launch of a new development bank. BRICS leaders agreed to set up a development bank on March 26, 2013 at the Fifth BRICS Conference in Durban, South Africa. After that, the economic alliance of Brazil, Russia, India, China and South Africa (BRICS) started its journey on July 21, 2015 as the New Development Bank-NDB. It is currently headquartered in Shanghai, China.
Since its inception, the New Development Bank has provided about 30 billion in loan assistance to member states for 70 different projects related to physical and social infrastructure and urban development. The latest bank announced a 225 crore US Dollar loan program for Corona epidemic member countries. However, it is true that Bangladesh would benefit.
*Pathik Hasan, Dhaka based NGO activist and Writer on contemporary international issues.