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Question

Difficulty: MediumInternational Relations, Global Summits, and Multilateral Organizations

Which of the following statements regarding the New Development Bank (NDB) are correct?

  1. It was established following the signing of the founding agreement at the 6th BRICS Summit in Fortaleza in 2014.Answer
  2. Each founding member state holds equal voting rights, with no single founding member possessing veto power.Answer
  3. C
    Bank membership is strictly restricted to original founding member countries of the BRICS alliance.
  4. The permanent headquarters of the New Development Bank is located in Shanghai, China.Answer

Answer

The correct statements are that the New Development Bank was established by the Fortaleza Agreement in 2014, founding members possess equal voting power without veto rights, and its permanent headquarters is situated in Shanghai, China.
The statements confirming the 2014 Fortaleza Summit origin, the equal voting rights structure without individual veto powers, and the Shanghai headquarters are all factual and accurate governance details of the New Development Bank.

Step-by-Step Solution

1
Evaluate statement regarding founding summit and treaty
Confirmed that NDB was officially agreed upon and signed during the 6th BRICS Summit in Fortaleza, Brazil (2014).
Establishing treaties define the international legal framework of multilateral institutions.
2
Analyze institutional governance structure and voting rights
Verified that all five founding members subscribed equal capital shares, resulting in equal voting power.
Governance architecture distinguishes NDB from Bretton Woods institutions.
3
Verify membership eligibility and expansion rules
Determined that membership is open to all UN member states, so restricting membership solely to founding BRICS states is incorrect.
NDB expansion policy permitted admittance of non-BRICS states like UAE, Bangladesh, and Egypt.
4
Confirm headquarters location
Verified that Shanghai, China serves as the central headquarters for NDB operations.
Host city allocation is a key structural fact for international financial bodies.

Key Concept

Founding treaty, governance framework, membership expansion rules, and organizational headquarters of the New Development Bank (NDB).
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Topics

International Relations, Global Summits, and Multilateral Organizations