ADB (Asian Development Bank), NDB (New Development Bank), and AIIB (Asian Infrastructure Investment Bank)
Comparison: ADB vs. NDB vs. AIIB
| Feature / Parameter | ADB (Asian Development Bank) | NDB (New Development Bank - BRICS Bank) | AIIB (Asian Infrastructure Investment Bank) |
|---|---|---|---|
| Year of Establishment | 1966 | 2015 (Treaty signed in 2014-fortaleza declaration) | 2016 (Treaty signed in 2015) |
| Headquarters | Manila, Philippines | Shanghai, China | Beijing, China |
| Type | Regional Multilateral Development Bank | Multilateral Development Bank (Global South) | Multilateral Development Bank |
| Founding Members | 31 (including India, Japan, USA, etc.) | 5 (Brazil, Russia, India, China, South Africa) | 57 (including India, China, UK, Germany, etc.) |
| Total Membership (2025) | 68 countries | 13 countries (BRICS + others) | 109 members (as of 2025) |
| Major Shareholders | Japan & USA (15.6% each), China, India | BRICS nations (equal shares) | China (~26.6%), India (~7.6%), Russia, Germany |
| Voting Rights | Weighted voting based on capital; Japan & USA largest | One country, one vote; BRICS must retain >55% | Based on subscribed capital; China largest |
| India's Shareholding & Voting Power | ~6.4% shareholding, 6.3% voting power | Equal founding member (18.45% capital/votes) | 7.6% shareholding (2nd largest), key decision-maker |
| Authorized Capital | $165 billion | $100 billion | $100 billion |
| Operational Focus | Poverty reduction, infrastructure, climate finance, gender, regional integration | Sustainable infrastructure, BRICS cooperation | Infrastructure, sustainable development, connectivity |
| Key Projects in India | Metro rail, solar energy, industrial corridors | Renewable energy, rural roads, urban infra | Mumbai Metro, rural roads, smart cities |
| Unique Features | Japan and USA dominate governance | Equal voice to all founding members | Geopolitical alternative to Western-led banks |
| India’s Role | Founding member, 4th largest stakeholder | Founding member, President from India (K.V. Kamath 1st) | Founding member, 2nd largest shareholder |
| Environmental and Social Safeguards | Stringent (per OECD norms) | Moderate (aligned to national systems) | Balanced, evolving safeguards |
| Criticism / Challenges | Western domination, slow disbursement | Low disbursement rate, limited global reach | Perceived as China-dominated, debt diplomacy concerns |
India plays a critical role in all three banks, but its voting power is highest in NDB due to equal BRICS distribution.
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While ADB is led by Japan-USA, AIIB is led by China, and NDB offers an alternative multipolar model with no veto power.
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All three banks are instrumental in funding India’s infrastructure push, especially under National Infrastructure Pipeline, Gati Shakti, and renewable energy transitions.
China does not have a formal "veto power" in the AIIB like the United States has in the IMF or World Bank. However, China has de facto veto power due to its high voting share.
Here's how:
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Voting structure in AIIB is weighted based on shareholding.
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Major decisions (like approving new members, amending the Articles of Agreement, or increasing capital) require a supermajority vote of 75% of total voting power.
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China holds approximately 26.6% of the voting power.
Why this matters:
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Since 75% is the threshold, and China alone has more than 25%, it can block any major decisions that require this supermajority.
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Hence, China effectively has a veto, even though not explicitly mentioned in the AIIB charter.
India’s Position:
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India is the second-largest shareholder with around 7.6% voting power, but not enough to block major decisions individually.
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