28615832 Compare and Contrast the Orthodox and Alternative approaches to development? The 'orthodox' view of development is rooted in economic liberalism. In this view, poverty is defined as absolute and squarely in economic terms. Thus, the orthodox view sees development as synonymous with economic growth and therefore believe that poverty can only be eliminated through the stimulation of the free market system. This view has dominated thinking on poverty, inequality, and development since World War Two. Furthermore, it is reflected in modernization theory, trickle-down economics, and economic liberalism. The Orthodox view then later expanded in the 1970s and 1980s through the rise of neoliberalism. This was pioneered by political figures such as President Ronald Reagan and Prime Minister Margaret Thatcher in this era, with successful examples like the modernization and development of South Korea after the Korean War. However, with the ineffective nature of trickle-down economics and neoliberalism in most nations, this has caused the rise of alternative views on development from the late 1980s. This Alternative view of development takes a more humanistic approach towards poverty and development. This humanistic approach rejects the orthodox's view of looking at poverty solely in economic terms. This is because the alternative view asserts that the lack of non-material needs should be included too when investigating poverty. In addition, the Reformist Alternative view follows the 'Southern Consensus' on development with its emphasis on a greater role of state intervention. This is supported by China as the most impressive 'southern consensus' model of development. Through distinguishing and comparing the two approaches to development, this essay will evaluate for and against these models, incorporating case studies, and thus conclude that the reformist 'Southern Consensus' approach is the best method to alleviate poverty and stimulate development. The Orthodox view holds that 'underdeveloped' countries have a lack of income calculated by Gross Domestic Product (GDP) Per Capita or economic resources to maintain basic material needs for its citizens. Whereas Alternative approach calculates poverty based on Human Development Index (HDI) to reflect their humanistic viewpoint of poverty. The Orthodox View utilises the Modernization Theory (Rostow, 1960) to state that these underdeveloped countries are destined to follow a linear path to modernise and develop through western norms via the stimulation of the free market. They argue that this is the only PAIR1001 ESSAY
28615832 method to eliminating poverty. One case study to support this is the rapid industrialisation in South Korea after the Korean War (1950-53). The rising living standards, education levels, urbanisation and human development in South Korea generated the foundation for South Korea to rise from post-war poverty in accordance with Modernization Theory (Przeworski et al., 2007). This was to the extent that it made South Korea victorious as the 13th largest economy in the world by Projected GDP (Statistics Time, 2016). In comparison, the 'alternative' view opposes the 'one size fits all' implications of the Orthodox approach, especially regarding modernization theory and its reductionist idea of a westernised linear transition from a poorer or undeveloped country