POVERTY ERADICATION - LESSONS FROM CHINA AND SOUTH-KOREA IN THE 1950SAND 1960S

This article traces the search for development alternatives which go b eyond conventional neoclassical and Marxist theory and practice. It ex amines case profiles of social transition in South Korea to capitalism under non-classical conditions and in China to socialism under noncla ssical conditions, in the 1950s and 1960s, which differed from attempt s in Latin America and Eastern Europe respectively, and lessons drawn for poverty eradication strategies. The lessons show that in both case s a transformation of considerable depth was undertaken and culturally relevant development paradigms were evolved. The state played a strat egic role and provided sensitive support to the release of the creativ e energies of the people. A new accumulation process at the base of th e economies, with asset re-distribution, savings, a new man/nature/tec hnology mix and an effort to keep the rural peoples' surplus in their hands through organizations of the poor, contributed to the eradicatio n of the worst forms of poverty within a reasonable time frame. Both c ases showed that the objectives of growth, human development and great er equity could be part of a complementary process, and need not be tr ade-offs.