The simplest development model is uni-dimensional, and it emphasizes only the economic growth of a community. In such the simplest model, socio-economic systems are of two kinds, i.e. socialist and capitalist. This division is based on the ownership of national resources and wealth distribution.
In the capitalist model, resources needed for development are owned by individuals or private companies. Further, these companies and individuals can earn profit, and market dynamics govern these. The profit gained is shared among employees, investors and the government. In the socialist economic system, resources are owned by the government, and the government distributes wealth. Enterprises in socialist systems are governed by public welfare policies and not solely by profit. Irrespective of these underlying differences, both systems adopt the simple notion of development based on economic growth.
Sustainability The first principles add one more dimension to the development, i.e., protecting the environment and natural resources. It presumes that growth happens in the environmental context. Each developmental action either consumes natural resources or adversely affect the earth environment. So the principle of sustainable development prescribes that each developmental step shall meet current and future generations' needs and address economic and environmental aspects. So a sustainable development may be defined as
Sustainable Development = Economic Growth + Protecting Environment
The majority of sustainable development goals such as no poverty (SDG1), clean water and sanitation (SDG6), affordable clean energy (SDG7), decent work and economic growth (SDG8), Sustainable cities and communities (SDG11), responsible consumption and production (SDG12), climate action(SDG13), life below water(SDG14), life on land (SDG15) are derived based on this principle.
Equity The second principle presumes that economic growth and development are the means or methods, or instruments to bring equality among the members of a community. The notion of equity refers to fairness in wealth distribution and opportunities for growth. The term equity also refers to social justice, which implies that the beneficiaries of a developmental act's outcomes shall include the most deprived or underprivileged section of a community. The beneficiaries of a developmental action shall not be restricted to elite or aristocrats in society.
Equity and social justice are a culture-dependent phenomenon. In western culture or Christianity, social justice means an assurance of human rights, holding of human dignity, and actions aimed at poor and underprivileged community members. In Indian culture, especially in Hinduism, social justice and equity refer to eradicating a caste-based system and removing caste barriers and developmental programs providing growth opportunities to members from scheduled castes, tribes, and other backward classes. Hence, equitable development is defined as
Equitable Economic Development = Economi Growth + Social Justice
Some of the sustainable development goals are derived from the principle of equity are gender equality (SDG5), decent work and economic growth (SDG8, and reduced inequality (SDG10).
Diversity Diversity refers to the representation or involvement of multiple identities in a community or an organization. This can be either enforced through legal intervention or organizational policies. The rapid rate of industrialization has created employment opportunities for skilled and unskilled labours. This can either be met by the workforce available within a community or through migrated labours. Some of the development economists have explored the impact of diversity present in a community on its economic growth. These economists observed a positive correlation between linguistic and ethnic diversity and economic growth, especially in developing countries. For example, the Indian city Mumbai which has heterogeneous citizens in linguistic and ethnicity, observes higher economic growth than other Indian cities with no linguistic diversity. Hence, the third principle suggests promoting diversity in a community or an organization for its economic growth.
Sustainable development goals such as decent work and economic growth (SDG8) and Peace, Justice and Strong institutions (SDG 16) indirectly refers to this principle.
Inclusiveness The fourth principle of economic development prescribe the participation of all community members, especially marginalized people, in social, political and economic and in the decision making process. A strong democratic institution, women empowerment, secularism, social protection are some of the pre-requisites for inclusive economic growth.
It is necessary to have reduced risks and vulnerabilities associated with age, illness, disability, natural disasters, economic crises and civil conflict to build strong democratic institutes supporting inclusive economic growth.
Inclusive economic growth is justifiable on account of concern for the poorest and marginalized in society, protection of human rights, strengthening people's economic activity and social security to the poor to have access to legal means of survival and live in safety.
Sustainable development goals such as decent work and economic growth (SDG8) and Peace, Justice and Strong institutions (SDG 16) indirectly refers to this principle.