Model-Driven Development (MDD) is a software development approach that focuses on creating and using models to design and build applications. Instead of writing code directly, developers create abstract representations of the system, which can be visualized and manipulated. These models help in understanding requirements and can be transformed into executable code automatically. MDD promotes higher levels of abstraction, allowing developers to concentrate on the system's functionality rather than low-level coding details. This can lead to improved productivity, better communication among stakeholders, and easier maintenance, as changes can be made at the model level and propagated throughout the system.