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This study tries to explain that the formulation of valid theory possesses enormous power to elevate and accelerate the expansion and development of human capabilities in any field, leading to fresh discoveries, improvement of existing activities and capacity for greater results. In the absence of valid theory, social development remains largely a process of trial and error experimentation, with a high failure rate and a very uneven progress. The dismal consequences of transition strategies in most East European countries, the very halting progress of many African and Asian countries, the increasing income gap between the most and the least developed societies, and the distressing linkage between rising incomes, environmental depletion, crime and violence reflect the fact that humanity is vigorously pursuing a process without the full knowledge needed to guide and govern it effectively.