An Analysis Of The New Development Bank In The Framework Of Interuational Pelitical Econcmy

BRICS Countries have approved creating the New Development Bank (NDB), which would fund investment projects and other projects in developing countries. This is the first multilateral development bank after the European Bank of Investment and Infrastructure in 1991.This paper tries to put this New Development Bank in into the context of the rational design of international institutions in the framework of Cooperation theories. It first analyzes the international economic context of the NDB, and then it goes on to analyze the trend of globalization and how NDB exists as an answer of the BRICS country to the new trend. With the economic development of the BRICS countries, the existence of NDB serves as an important external bargain and check to the existing international economic structure.The second chapter of the paper focuses on the international politic and economic pursuits of NDB. It is a political gesture to articulate the frustration BRICS and other developing countries feel about the failure to make the IMF’s governance provide more voice to developing coutnries. It is an intentional design of the BRICS country to establish a global institution to strengthen the international political power of BRICS country representing all developing coutnries. But, to make the NDB sustainable, it needs to satisfy the economic needs of the developing countries, which could potentially buy in the support of other countries. BRICS could improve the efficiency of foreign reserves. Even though the current scale of NDB is still small, but the for these five countries, it is a good opportunity to find the more efficient approaches; third, it is an opportunity to purify the international finance system, it could improve the current troubles of corruption in the developing countries; fourth, it could provide a new development mode; last, it could inspire more courtiers to learn from these five countries.Last, this paper explains the opportunities brought by the NDB and how it promotes the effectiveness of international development and benefits all stakeholders. It promotes the big grants currently given out by the NDB and the motivation of the bank is not to challenge the current system, but to promote better management and more opportunities given out by the World Bank and IMF. And accompanied with the economic opportunities, many potential barriers and uncertainty co-exists due to the nature of the economic development level of the five initiators, enforcement and other problems.This paper tries to give analysis of the design of the NDB and further the understanding of the establishment of the complimentary international economic structure represented by the NDB.