EXPLORING THE NEW DEVELOPMENT BANK'S (NDB) APPROACH TO SUSTAINABLE FINANCE

Abstract

NDB, the BRICS-led development bank, is tasked with implementing 'sustainable finance' tools to pursue sustainable development among its member countries. With Covid-19 ravaging the global and regional economies, it is imperative that NDB and its member states find long-term solutions through sustainable financing. NDB's General Strategy: 2017-2021 laid the foundation for operations to mitigate some of the development challenges, as stated in its annual report of 2020. Moreover, sustainable financing will continue to be used in the new strategy 2022-26.

Based on the conceptual framework of sustainable finance, the work tries to locate NDB’s role in generating amenable solutions to the development problems in the BRICS nations. The paper appraises the previous results on development finance by NDB and puts forward the issues and challenges for its next strategic cycle (2022-26). The paper concludes that BRICS-led NDB has credible potential to fulfil the Sustainable development goals. Unlike the other Bretton Woods institutions, its policies like ‘co-financing’ and ‘multi-currency environment’ are in accord and complement the development visions of major developing economies(EMDCs) like India.

To undertake this research, the author employs data from secondary sources such as the latest publications on development economics, especially sustainable finance.