With reference to New Development Bank (NDB), consider the following statements:
1. It was established in 2014 by BRICS countries through the Fortaleza Declaration.
2. Its membership is limited to BRICS countries.
3. All BRICS nations currently have equal voting power.
Which of the statements given above is/are correct?
(a) 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Explanation
Recently, the annual meeting of the Board of Governors of the New Development Bank (NDB) was held in Rio de Janeiro, Brazil, where Colombia and Uzbekistan were admitted as new members of the Bank.
Statement 1 is correct: The Fortaleza Declaration, signed on 15 July 2014 during the 6th BRICS Summit in Fortaleza, Brazil, marked the agreement among Brazil, Russia, India, China, and South Africa to establish the New Development Bank (NDB). While the foundational agreement was concluded in 2014, the bank officially became operational in 2015.
Statement 2 is not correct: The NDB’s Articles of Agreement make it clear that membership is open to all UN member states, whether borrowing or non-borrowing, and not restricted to the five BRICS founders. So far, Bangladesh, UAE, Egypt, Uruguay, and Algeria have joined as new members, showing that the bank extends beyond just BRICS countries.
Statement 3 is correct: The founding agreement of the NDB provides equal voting rights to each founding member, with no provision for veto power, thereby ensuring democratic decision-making, as each BRICS nation holds 20% of the total voting share.
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