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Development. 1992; (3):72-6.An expansive definition of sustainable development is given to include operationalized measures such as: land and water resources, natural resource related measures, population and quality of life indicators, environmental indicators, welfare and level of living indicators, and institutional and legal indicators. Major global problems still include hunger and poverty. The most crucial issue is the sustainability of the developmental process when social, ecological, and economic environments are deteriorating. Several factors causing this deterioration are constructed using a paradigm. The paradigm entails simultaneously accounting for security and welfare. Care must be taken in assuming that growth is equal to welfare, when welfare includes growth and equity and justice. The concept of resource cost within a market pricing system is necessary to environmental and economic development. Wealth is determined by capital stock and environmental and human resources. The notion of the individual as the basic entity for all welfare computations denies the interdependence of natural resources and humanmade capital, between nations and groups, humanity and animals, biomass and animals. The emerging issues are how to bring about the desired changes. The neoclassical school and the utility approach say to adjust demand (consumption) through pricing which leads to inequality. Marx and Engel suggested demand be treated as secondary. Human welfare is adjusted through productive structures and distribution, which in developing countries has revealed inefficiency and mismanagement of common property resources and misallocation of environmental resources. A crisis is the inability to find perfect substitutes for ecological resources. Environmental theory did not provide for tools for pricing environmental resources. Human capital is limited in acting as a substitute for natural capital. 1) Limits to sustainability, high costs of substitution, and irreversibility of ecological resources pose major problems to economic development. 2) Economic progress has declined even with a high rate of capital accumulation. There is a vicious cycle of poverty and environmental degradation. 3) Population pressure adds to the complexity of the issues. Valuation of resources is problematic. 4) Women's status and responsibilities are at stake and urban challenges are increasing. A social system analysis is an appropriate framework: an ecological paradigm of maintaining resources instead of income. A balance between long and short development is necessary. Dynamic adjustments are possible.