Question 80 from UPSC CSE 2016 - Current
Affairs

Question

Consider the following statements:
1. New Development Bank has been set up by APEC.
2. The headquarters of New Development Bank is in Shanghai.
Which of the statements given above is/are correct?

IASCODEX · Accepted Answer

Correct Option: B. 2 only

Strategy: First, assess the origins of the New Development Bank (NDB). Recall that NDB is a creation of the **BRICS** group of nations, not APEC. This immediately invalidates Statement 1. Next, verify the headquarters location for NDB. It is a well-established fact that NDB's headquarters are in **Shanghai**, China. This confirms Statement 2 is correct. Therefore, select the option that includes only Statement 2.

Key Info: The New Development Bank (NDB), formerly known as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China, and South Africa).

*   **Establishment:** The idea for the bank was proposed by India at the 4th BRICS summit in 2012. An agreement to establish the NDB was signed at the 6th BRICS Summit in Fortaleza, Brazil, in July 2014. The bank formally opened in 2015.
*   **Purpose:** Its primary objective is to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.
*   **Headquarters:** The NDB is headquartered in Shanghai, China.
*   **Initial Capital:** It was established with an initial subscribed capital of US$50 billion, equally distributed among the founding members.
*   **Governance:** Unlike the World Bank, where votes are based on capital share, in the NDB, each participant country is assigned one vote, and none of the countries has veto power.
*   **First President:** Kundapur Vaman Kamath from India served as its first President.
*   **APEC (Asia-Pacific Economic Cooperation):** APEC is a regional economic forum founded in 1989 to promote free trade throughout the Asia-Pacific region. It comprises 21 member economies and is not involved in establishing the New Development Bank.

IASCODEX · Answer

Option A: 1 only

IASCODEX · Answer

Option C: Both 1 and 2

IASCODEX · Answer

Option D: Neither 1 nor 2

Consider the following statements: New Development Bank has been set up by APEC. The headquarters of New Development Bank is in Shanghai. Which of the statements given above is/are correct?

Consider the following statements:

New Development Bank has been set up by APEC.

The headquarters of New Development Bank is in Shanghai.
Which of the statements given above is/are correct?