Addressing the ‘New in the New Development Bank (NDB)’: A Mission-Oriented Institution to Finance the BRICS’ Ecological Transitions
Addressing the ‘New in the New Development Bank (NDB)’: A Mission-Oriented Institution to Finance the BRICS’ Ecological Transitions
Author: João Pedro Loureiro Braga
Degree: Master’s Thesis
Date: 2022
Institution: University of the Witwatersrand, Johannesburg, South Africa
Supervisors:
Bruno De Conti, UNICAMP, Brazil
Uma Kollamparambil, Wits University, South Africa
Guilherme Magacho, Agence Française de Développement, France
Christina Teipen, HWR Berlin, Germany
This thesis examines the New Development Bank (NDB), established by BRICS in 2014, focusing on its potential as a mission-oriented institution to finance ecological transitions in member countries. While the NDB is designed to support sustainable development through loans, guarantees, and equity participation, it has received limited scholarly attention regarding its distinctiveness and effectiveness in promoting green finance.
The study develops an analytical framework to critically assess the NDB’s engagement with sustainability, evaluating its claims of innovation in financing just ecological transitions. The research begins with a literature review on the mission-oriented roles of development banks in climate finance, followed by an empirical analysis of BRICS’ challenges in financing sustainable infrastructure through the NDB. A qualitative case-study approach is used to examine the bank’s projects, exploring how country-specific contexts influence the implementation of sustainable initiatives.
Findings highlight both opportunities and constraints in positioning the NDB as a pioneering institution in green finance. The thesis concludes that while the NDB demonstrates demand-driven support for sustainable infrastructure, addressing institutional and contextual challenges is essential to consolidate its role. By emphasizing mission-oriented financing strategies, the NDB can effectively contribute to the BRICS ecological transitions and strengthen its standing in the global development community.
