BRICS Development Bank as an Alternative to IMF in Africa: Quantitative and Qualitative Hypotheses Testing

Introduction

Many scholars, such as Longman (2006) and Ismi (2004), hold that the IMF and the World Bank have failed in their mandate to provide financial and technical support to Africa. The levels of poverty and unemployment in the continent continue to rise. It is high time the region looked for an alternative to replace IMF and the World Bank. The BRICS New Development Bank is regarded by Longman (2006) as a viable alternative to the two institutions. In this study, the researcher tested five hypotheses to determine the feasibility of BRICS replacing IMF and the World Bank as an alternative for Africa.

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Hypotheses

H0: The current policies implemented by IMF and World Bank are not effective in addressing African countries' economic plight.1, 2, 3, 4 5

H1: The current policies implemented by IMF and World Bank are effective in addressing African Countries' economic plight.

H0: New Development Bank will be an appropriate and effective alternative to World Bank and International Monetary Fund.

H1: New Development Bank will not be an appropriate and effective alternative to World Bank and International Monetary Fund.

H0: The New Development Bank will develop Africa more than IMF and World Bank as currently instituted.

H1: The new Development Bank will not develop Africa more than IMF and World Bank as currently instituted.

H0: Establishing a bank that takes care of African countries' concerns is the most important strategy in the modern and dynamic business environment.

H1: Establishing a bank that takes care of the African countries' concerns is not the most important strategy in the modern and dynamic business environment.

H0: New Development Bank will help in closing the gap in economic, social and political problems experienced by African countries.

H1: New Development Bank will not help in closing the gap in economic, social and political problems experienced by African countries

Test of Hypotheses

A survey questionnaire and an interview were used by the researcher to test the hypotheses. The survey questionnaire contained 30 items, while the interview schedule contained 11 questions.

Findings

H1: The current policies implemented by IMF and World Bank are not effective in addressing African countries' economic plight

H2: The New Development Bank will be an appropriate and effective alternative to World Bank and International Monetary Fund

H3: The New Development Bank will not develop Africa More than IMF and World Bank as currently instituted

H4: Establishing a bank that takes care of African countries' concerns is the most important strategy in the modern and dynamic business environment

H5: The New Development Bank will help in closing the gap in economic, social, and political problems experienced by African countries.

References

Ismi, A., 2004. Impoverishing a continent: the World Bank and the IMF in Africa. New York: Halifax.

Longman, A., 2016. Competitor or substitute?: the New Development Bank BRICS's role as an alternative to the World Bank. Rotterdam: Erasmus University Rotterdam.