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Abstract: This chapter augments Chapter 1’s foundations with detail on political and economic development, inequality, their interactions, and associated CAPs. Development entails sustained, widespread improvement of economic and political capabilities. Economic development includes steady growth in per capita income, education, health care, and infrastructure, with attention to deprivation, poverty, broader inequities, and associated avenues and barriers to achievement. It also involves creating functional economic institutions. Political development entails steady augmentation of a state’s ability to provide public goods and services; protect economic, political, and civil rights; and create and enforce impartial rules (a rule of law). It also involves broad access to political decision making, limiting authority, mobilizing public participation, and enhancing the legitimacy of underlying procedures. Inequality has multiple dimensions (income, wealth, access); achieving equity along one dimension often compromises that for another. Multiple types of inequality are both outcomes of and conditions that shape development. Multiple CAPs ensue.