July 4-5
10th Annual Meeting of New Development Bank
BRICS Bank Consolidates Strategic Expansion and Reinforces Commitment to Sustainable Development
The New Development Bank (NDB) is an integral part of BRICS and its 10th annual meeting was held in Rio de Janeiro, Brazil just prior to the BRICS Summit. It is "a multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS) [in 2015] with the purpose of mobilizing resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs)," its website says. "Working hand in hand with our member countries and stakeholders, we leverage capital for development purposes to accelerate economic growth, as well as to achieve environmental and social sustainability to improve the lives of people in our member countries," it adds. The NBD is headquartered in Shanghai, China.
Dilma Rousseff, former president of Brazil (2011-2016) has been the NDB's president since 2023. Speaking at the conclusion of the NDB's Annual Meeting on July 5, Rousseff outlined the institution's recent progress -- from the admission of new members to the overcoming of financial turbulence -- while adhering to its core mission to promote sustainable and sovereign development.
Dilma Rousseff (fifth from left) at NDB's Annual Meeting on July 5, 2025
The expansion of the bank's membership was a central focus of the presentation. Rousseff confirmed the approval of Colombia and Uzbekistan as the newest members of the NDB, a decision made by the Board of Governors, composed of the Finance Ministers of BRICS countries. With these additions, the bank now has 12 members, including its founding members -- Brazil, Russia, India, China, and South Africa -- and subsequent members -- Algeria, Bangladesh, Egypt, United Arab Emirates and Uruguay.
Rousseff also noted that other countries are currently under review for membership. She said expansion of the NDB will follow strategic criteria, always with the goal of strengthening its representativeness within Asia, Africa, Latin America and the Caribbean, she explained, making clear that the Bank remains open to qualified new members.
Governance was another key pillar of the president's remarks. Rousseff drew a clear contrast between the NDB's model and institutions like the International Monetary Fund (IMF) and the World Bank. The NDB was established by countries in Africa, Asia and Latin America, that share a common history of colonialism and exploitation and economic dependency, to serve their interests. It has a governance structure based on substantive equality among members, she emphasized. In this innovative model, there is no room for unilateral veto power: all member countries have an equal voice in strategic decisions, which are made by consensus or qualified majority, she explained.
One of the most salient features of the NDB's governance is its rejection of what Rousseff referred to as political or economic conditionalities. This refers to how the IMF and World Bank give loans based on "structural adjustments" made by countries that receive them, wrecking the economies of these countries and depriving the people of control over the direction of their economies, and making them subject to the whims of global financiers. Rousseff pointed out that the NDB's model "is demand-driven. It is the member countries that define their development priorities, and we assess projects based on technical -- not political -- criteria," Rousseff stressed, underscoring the NDB's commitment to national sovereignty in all its operations.
The financial report presented by Rousseff indicated the challenges faced by the NDB, including a particularly difficult 15-month period when the bank was unable to raise funds in international markets -- a situation that tested its liquidity and required bold corrective measures.
Since assuming leadership in March 2023, Rousseff has spearheaded a campaign to resume bond issuances, successfully raising $16.1 billion in 2024 alone, at rates that reflect renewed market confidence.
"Today we have strong credit ratings, including a AAA grade from the Japanese agency JCR, and we are expanding into new markets, such as yen-denominated instruments and the Middle East," she said, signalling the NDB's growing presence in the global financial ecosystem.
The bank's project portfolio has now reached $40 billion in approved financing since its inception encompassing 122 strategic initiatives, of which $22.4 billion has already been disbursed. In the case of Brazil specifically, investments total $2.3 billion, spanning sectors as diverse as logistics infrastructure, clean energy, and health system modernization.
The investment strategy follows key priorities aligned with what the NDB has identified as the most pressing development challenges of the 21st century. Logistics infrastructure receives particular emphasis, with projects aimed at upgrading ports, airports, and railways -- including feasibility studies for high-speed trains -- as well as regional integration initiatives such as the bi-oceanic railway linking Brazil and Peru, still in bilateral discussion.
Digital transformation is another key priority, with funding directed toward the expansion of 5G networks, early groundwork for 6G, and the development of data centres to ensure member countries' technological sovereignty. In the realm of social infrastructure, smart hospitals equipped with AI and telemedicine technologies are featured as flagship projects, alongside essential initiatives in basic sanitation and affordable housing.
Energy transition completes the list of investment priorities, with significant funding flowing into solar and wind energy projects -- always accompanied by innovative solutions for battery storage. "Storing wind and sunlight was once mocked as a fantasy, but today it is one of the most strategic areas in the global energy sector," Rousseff noted, alluding to past criticisms of her advocacy for these technologies.
Local-currency financing warranted a dedicated section of her remarks. Rousseff highlighted the risks faced by emerging economies overly reliant on the U.S. dollar for external financing. "Any business or government that borrows in foreign currency becomes subject to decisions made by the Federal Reserve or other central banks in developed nations," she cautioned.
As a concrete example of this alternative approach, she pointed to a project in Brazil funded directly in Chinese renminbi, without the need for dollar conversion. She also noted strategic partnerships with national development banks like the Brazilian Development Bank (BNDES) and Regional Development Bank of the Far South (BRDE) to structure operations with reduced exchange-rate risk. This policy aims to shield member countries from the volatility of strong currencies while strengthening domestic capital markets -- fostering a more resilient financial ecosystem, less dependent on traditional centres of financial power.
Technological innovation emerged as a cross-cutting theme in Rousseff's remarks. Emerging economies must gain mastery over critical technologies such as artificial intelligence, biotechnology, and robotics -- lest they become "passive consumers of platform capitalism," said Rousseff. The NDB, she said, positions itself as a strategic facilitator in this process, actively promoting knowledge-sharing among members.
She cited China's expertise in electric vehicles and solar panels, India's strengths in the digital economy, and Brazil's leadership in biofuels and deepwater oil exploration as examples of complementary assets ripe for exchange. "We have a flagship smart hospital project in São Paulo that incorporates Chinese know-how in its design," said Rousseff, saying that this is exactly the kind of cooperation the NDB aims to foster. This is an example of how the bank can function as a platform for technological collaboration among developing nations, she pointed out.
Outlining the bank's strategic outlook, Rousseff laid out four key priorities. First, the expansion of the membership base will proceed based on strategic criteria that bolster the NDB's geographic and economic representativeness. Second, the mobilization of private capital will be intensified through innovative guarantee mechanisms aimed at reducing investor-perceived risk.
Third, partnerships with leading research institutions will be scaled up to accelerate the pace of technological innovation in member countries. And fourth, local-currency operations will remain an absolute priority as a means of building a more diverse, balanced international financial system.
Asked about the controversial topic of "de-dollarization," Rousseff offered a cautious and analytical response. "I don't see concrete evidence of an imminent decline in the dollar's status as the world's primary reserve currency. But the rise of initiatives to expand trade in local currencies is undeniable, and I see that as a positive development," she said. Under her leadership the bank has sought tangible and practical alternatives to vulnerabilities in the global financial system.
The proceedings of the NDB's annual meeting indicate that the bank has a strategic plan firmly in place and continues to consolidate its position as a relevant actor on the international financial stage, offering a viable alternative that combines technical soundness with deep respect for the needs of developing nations.
(BRICS Portal)
This article was published in
Volume 55 Number 18 - July 18, 2025
Article Link:
https://cpcml.ca/Tmlm2025/Articles/TS55183.HTM
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