Bangladesh to benefit from NDB membership – OpEd – Eurasia Review
Bangladesh joined the New Development Bank (NDB) as a new member. The country recently submitted the instrument of accession to the Brazilian government.
Earlier, on August 20, 2021, Bangladesh was on the NDBA Board of Governors list. In 2015, the BRICS (Brazil, Russia, India, China and South Africa) created the NDB.
Following this, on September 18, Bangladesh submitted its instrument of accession to the Government of Brazil, which confirmed Bangladesh’s membership in the Bank.
In a press release issued today by the Ministry of Finance, NDB Chairman Marcos Trojo warmly congratulated Bangladesh Finance Minister AHM Mostafa Kamal on the latest situation.
This is the first time that a country outside of 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 as the country grows.
Kamal expressed hope that including Bangladesh in the NDB would benefit both sides.
Since its inception six years ago, the NDB has approved around 70 projects in member states with a total portfolio of $ 30 billion. The bank mainly grants loans for projects related to transport, water and sanitation, renewable energy, digital infrastructure, social infrastructure and urban development.
The authorized capital of NDB is US $ 100 billion and any member state of the United Nations can apply to become a member of the bank.
Marcos Trio, President of BRICS Bank has already welcomed Bangladesh to the new development bank
The message came to congratulate Bangladesh Finance Minister AHM Mustafa Kamal as a new member state, the finance ministry said recently in a press release.
After the formalities, Bangladesh became 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 NDB Board of Governors meeting on August 20 approved the accession of Bangladesh as a new member state.
In this context, in accordance with the rules of the bank, when Bangladesh submitted the instrument of accession to the Brazilian government on September 16, 2021. Bangladesh’s membership in 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, created in 2015 with the confirmation of the participation of Bangladesh.
Bangladesh is a new member of the New Development Bank
What is the benefit of joining BRICS Bank?
The Minister of Finance said: “Along with the development of Bangladesh, the demand for foreign aid is also increasing. In this context, Bangladesh’s membership in the new development bank will be beneficial for both.
The finance minister hoped that funding for 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 approximately $ 30 billion in aid in the form of loans to member states for 70 different projects related to physical and social infrastructure and urban development.
Bangladesh’s membership was discussed at the start of the New Development Bank (NDB). At that time, the government attached more importance to the membership of the Asian Infrastructure Investment Bank (AIIB) proposed by China.
Prime Minister Sheikh Hasina responded positively when Prime Minister of India, a member state of the BRICS, Narendra Modi invited Bangladesh to join the New Development Bank at a virtual summit in December last year. After that, the journey began on the way to reach the bank.
According to the Bangladeshi media, Bangladesh will be completely out of the low-income country by 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 own expense. If he has become a NDB member now, he will be able to get a low cost loan later.
It is good news that Bangladesh has joined the new development bank. It is not yet known whether Bangladesh will have a representative on its board. 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 for having a record of loan repayments to donor agencies. Now more benefits will be added.
We learn that the idea of creating a securities 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 establish a development bank on March 26, 2013 at the 5th BRICS Conference in Durban, South Africa. After that, the economic alliance of Brazil, Russia, India, China and South Africa (BRICS) began its journey on July 21, 2015 under the name of New Development Bank-NDB. Its headquarters are currently in Shanghai, China.
Since its inception, the New Development Bank has provided approximately $ 30 billion in aid in the form of loans 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 member countries of the Corona outbreak. However, it is true that Bangladesh would benefit from it.
*Pathik Hassan, Dhaka-based NGO activist and writer on contemporary international issues.