This discussion focuses on problems facing developing and developed nations and describes social changes required to meet human needs in the economic condition of scarcity facing industrializing and postindustrial societies. Current problems of developed societies are emphasized. For example, traditional health care provision in western societies is discussed as the outcome of a way of life that leads to concentration on illness rather than health. Generally, western health institutions are viewed as symptomatic of a culture in which reality (including the human being) is perceived as machine-like. Numerous social and psychological problems associated with such a view are pointed out. Current problems of eastern countries are discussed in relation to inadequacies of the western model of development. It is asserted that alternate modes of development are needed. Especially recommended for western societies is a greater emphasis on the role of families and communities in plans for a new mode of development; eastern societies are encouraged to strengthen existing basic social relationships among members. Two aspects of work done at the Vanier Institute of the Family are discussed: the first aspect concerns the informal economy, while the second involves capacities and activities found in the familial household and the community, especially among women. In concluding sections, strategies for increasing the salience of the informal economy are explored and the contributions of women to development are pointed out. (RH)