ABSTRACT
The proposal for establishing the New Development Bank originated from a report by Joseph Stiglitz, noble laureate of economics, and Nicholas Stern, a professor at London School of Economics. In this report, they analyse the figures from international organisations and conclude that emerging economies have relatively large demands for investment and a large amount of mobile idle cash. In the World Energy Outlook 2010 issued by the International Energy Agency, it is pointed out that as far as the energy sector is concerned, US$33 trillion worth of investment is required in the next 25 years, of which 64% comes from emerging and developing economies. 1 To properly and effectively utilise capital from the emerging countries and meet their incremental investment demands, Stiglitz mentions that a financial brokerage system should be established for the emerging and developing economies. The most feasible plan, amongst them all, is to set up a South–South development bank lead by emerging economies to meet the investment needs. The proposal by Stiglitz is based on a backdrop that multilateral development organisations have a certain degree of influence on infrastructural financing, but as for the increasing demands for emerging economies, the impact is rather limited.
