1. PSYCHOLOGICAL THEORY OF DEVELOPMENT

2. Growth and development of the human being are essential prerequisites to economic development. Enhancing the potential for an individual to achieve would necessarily increase the chances for development. SOCIAL CONTEXT

3. PSYCHOLOGICAL THEORY OF DEVELOPMENT Psychology – modern science which begins with the establishment of the experimental psychology laboratory in 1879 by Wilhelm Wundt (father of experimental psychology) in Leipsig, Germany.

4. PSYCHOLOGICAL THEORY OF DEVELOPMENT Other than economic and financial factors, human factors and human beings themselves affect and determine and even initiate economic growth. Man – with his own dignity, he has his own needs, capabilities and limitations. Economic growth is caused by people whose motives, way of thinking, and attitudes have changed.

5. PSYCHOLOGICAL THEORY OF DEVELOPMENT Change is initiated when some group or groups of lesser elite loses or feels that they have lost their “respected and valued” position. (Everett E. Hagen) The chief motive of man is the need for achievement—the desire to do well. (McClelland)

6. CRITIQUE One of the most lose theories of development Very much dependent on its interrelatedness with the environment and other factors Not applicable for poor communities