This paper argues that the goal of community development should be to provide more than material gains such as fast economic growth. The paper provides two case studies from Ethiopia which demonstrate how proper implementation of community development processes and principles might lead to successful attainment of tangible and intangible development goals. During the past two decades, there has been growing doubt about the efficacy of community development. The criticism is often based on the notion that community development is designed to produce only tangible results or material progress. Intangible objectives might include social and psychological development, human resource development, or institutional development. Certain key elements or principles of community development are described and it is noted that if these are observed, they will make successful implementation of a development program more attainable. The formation of a community development association and the development of a small cooperative store and weaving industry are described. These two cases, both from Ethiopia, are offered to demonstrate community development's potential for the third world. (TES)