How NDB can help in promoting infrastructure in member countries.What are the requirements to achieve the objectives?
Need capital, need political support from peers, clients and even ( perhaps most important) rival countries. If US and EU don't undermine it, then this bank has a shot at doing this. Policy is the key thing. Infrastructure lending can be lost easily in corruption.
The basic objective of NDB is to promote infrastructure and sustainable development projects with a significant development impact in member countries. So the first requirement of NDB is capital. But the capital provided by NDB would go in operating cycles with a very long cycle period (infrastructure and sustainable development projects). So the second requirement is time which would come only with political willingness. Political willingness would come only when all the parties are playing win-win game. Now look at the constituents of NDB - Brazil, Russia, India, China and South Africa. To make a win-win game for all the constituents, is a tough task. Because requirements of each constituent is different. So basically we need a miracle to enable NDB.
I don't understand political win win game. All development banks have a strong leader and weak client countries. I see this as China lending with softer policy requirements. All other parties, always involved in typical EM instability and volatility, will be eager for long term financing with few strings attached. If these EM can even do some policy input, then it is the glory.
I wish, I had an example of political win-win game. Because politics is all about welfare of masses. Let's take an example of India and China. Both are major constituent of NDB, population density wise. In China the welfare of masses would come, only, if this factor of production (human resource/labor) is employed in some operating cycle, and chinese have rightly become the mass producer for most of the goods of mass consumption. Moreover, the policy makers in China have made such legal and academic infrastructure, that accumulation and explosion of the emotions is a rare happening. So welfare in China would come only with more operating cycles and more markets for the finished products of those operating cycles. Now look at India, a society, divided in small sections based upon caste, creed, religion, region and what not. Any segment can become vociferous at any given time and Indians lack the legal and academic infrastructure, so the explosion of accumulated emotions is a definite possibility and since the politics is all about welfare of masses, so pacifying the different segments of population is a major political agenda in India which drives the political willingness. If somehow we are able to overcome all these weaknesses of India then India is also rich with human resource/labor (Cheap factor of production) and harnessing of this Indian factor of production would mean search for market. Now we have a situation in which India and China both would be vying for the same market and now we are in a two person zero sum, game situation. So NDB would lack the political willingness and that,s why NDB would need a miracle.
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