Of the numerous discussions posed over the recent decades in social sciences، the discussion of development has been one of the most important and widespread ones. Therefor، in this paper the obstacles of economic developmentin ilam Province and its people's perception and interpretation of it have been investigated. The method of research is qualitative. The data was collected through ethnographic method and the grounded theory was used to analyze data. In this research, the documentary and obseravatory data and the data­ obtained from interviewing 56 participants, living ­in ilam,was collected by researchers. To select interviwees, the mothed of qualitative – purposive and to determine the number of interviewees the theoretical saturation method were applied. Analysis was done in three phases: open encoding, axial encoding, and selective encoding. For each question a grounded model was drawn. In the end, through the combination of all categories, the final model of research was extracted. The results of research show that the most important economic obstacles of development in this province are echologic, chronic economic poverty, lack of strong private sector, and the lack of economic infrastructures. Based on the Final model the development is perceived, evaluated and interpreted as a binary and reciprocal phenomenon which has been able to empower Ilam province and determine a great deal of problems of the people and change and recoustruct their lives in different dimensions on one hand and requires traditional costs on the other which is deemed as the unpleasant results of development from the viewpoint of Ilam people.
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