Intergovernmental Group of 24

ADOPTION OF THE GLOBAL SOUTH DEVELOPMENT BANK

The Governments of the Federative Republic of Brazil, the Syrian Arab Republic, the Islamic Republic of Iran, the People’s Republic of China, and the Republic of Cuba, have agreed in the city of Shirazi on the establishment of the New Development Bank (NDB). The Bank shall operate in accordance with the provisions of the annexed Articles of Agreement, that are an integral part of this Agreement.


[i]Noting[/i] Western rejection of any moves to limit the interference in the economies of the so-called Global South, despite several United Nations resolutions prior to 1985 being passed by the General Assembly

[i]Further noting[/i] that the nations of the Warsaw Pact and North Atlantic Treaty Organization have participated significantly in the financial affairs of the nations of the non-aligned world, henceforth the Global South,

[i]Alarmed[/i] by statements of the World Bank leadership, particularly those labeling nations of the “Third World” as “rent-seeking states,

[i]Finding[/i] the International Monetary Fund to be a useful organization for the development of the Global South, but insufficient in this regard and tied heavily to nations aligned with major world powers,

[i]Strongly condemning trade, financial aid, and the supply of materials to states who uphold racist ideology, such as South Africa and the State of Israel,

[i]Convinced[i]  that the establishment of such an international development fund would be apowerful instrument for increasing their economic cooperation;

[i]Mindful[/i] of a context where emerging market economies and developing countries continue to face significant financing constraints to address infrastructure gaps and sustainable development need

[i]Resolves to establish[/i] a Global South Development Bank with its central headquarters in Shanghai, its Asian regional headquarters in Jakarta pending Indonesia's admission, for the Middle Eastern and North African branch in Tehran, Havana for Latin America, and Lagos for Africa;

Have agreed on the establishment of the Global South Development Bank (GSDB), hereinafter referred to as the Bank, which shall operate in accordance with the provisions of the annexed Articles of Agreement, that constitute an integral part of this Agreement.

Article 1

The Bank shall mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.

To fulfill its purpose, the Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments. It shall also cooperate with international organizations and other financial entities, and provide technical assistance for projects to be supported by the Bank.

Article II

Membership in the Bank will be decided by a majority vote of the founding members, with initial invitations extended to all members of the Group of 24, their affiliates, Burkina Faso, and the Republic of Cuba. Each founding or applying member will be considered a shareholder in the bank with the purchase of one share [20 credits, 10 of which will take the form of energy-independent “green” bonds], though it is agreed-upon that no member may hold more a one-fifth stake in the Bank.
IIa: A quarter of all share purchases [5 credits] will go immediately towards the first steps of integrating trade between these nations, through loans and energy-independent bonds towards member states investing in cross-Bank finance and infrastructure.
IIb: The initial capital of the Bank will consist of [15c per member].

Article III

All members may propose a candidate for membership or observer status, provided said nation does not affiliate with the Warsaw Pact or the North Atlantic Treaty Organization (exempting the Republic of Turkey due to its regional ties) or endorse the apartheid government of South Africa, and upholds previous United Nations declaring that Zionism is indeed a form of racism.
IIIa: The Bank, its officers and employees shall not interfere in the political affairs of any member, nor shall they be influenced in their decisions by the political character of the member or members concerned

Article IV

The Bank will be headed by a Chair, who may serve two consecutive two-year terms as elected by the general membership. Assisting the Chair and making decisions outside of the Development Assembly will be the Global South Board of Directors, the composition of which will include one representative from each of the listed region elected on a bi-annual basis as per the elections for Chair.

Article V

There will be a Development Assembly year, consisting of all members and non-voting observers, taking place in an agreed-upon city by the Development Board, to vote on non-urgent matters.

Article VI

An increase of the authorized and subscribed capital stock of the Bank, as well as the proportion between the paid in shares and the call-able shares may be decided by the Board of Directors at such time and under such terms and conditions as it may deem advisable, by a special majority of the Board of Directors. In such case, each member shall have reasonable opportunity to subscribe, no member, however, shall be obligated to subscribe to any part of such increased capital.
VIa: All such decisions made by the Board of Directors on this matter are subject to the annual scrutiny of the Development Assembly.
VIb: No holder of office within the Global Development Bank will receive a salary or other compensation for their work as pertains to the Bank.

VII: Removal or suspension of any member, amendments to this Agreement, and provisions not covered by this Agreement are subject to the review of the Chair and Board, but must be ratified by the Assembly to be considered valid.

VIII: The Board of Governors, by special majority, may approve a general policy under which the Bank is authorized to develop the operations described in the previous items of this article in relation to public or private projects in a non-member emerging economy or developing country, subject to the condition that it involves a material interest of a member, as defined by such policy.
VIIIa:The Board of Governors is likewise authorized to extend humanitarian aid through the sale of energy-independent bonds and the contribution of its members, regardless of national interest.
VIIIb: Priority will be given to the development of energy-independent infrastructure within Bank members.

IX: This Agreement moves to extend observer status to the following organizations

-United Nations Economic/Social Commission For Asia And The Pacific
-United Nations Economic Commission for Latin America and the Caribbean
-United Nations Economic and Social Commission for Western Asia

-Central American Bank for Economic Integration
-Islamic Development Bank
-African Development Bank
-Asian Development Bank
-Development Bank of Latin America
-Organization of Petroleum Exporting Countries
-Economic Community of West African States
-South Pacific Forum
-League of Arab States
-Organization of the Islamic Conference
-Gulf Cooperation Council
-Arab Monetary Fund
-International Labour Organizations
-United Nations Group of 77
-Preferential Trade Area for Eastern and Southern Africa