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MDSD stands for Model Driven Software Development. It is also known as MDD. Right now models are just treated as documentation. However in MDD, models are at the same level as code.
A related topic is MDA, which stands for Model Driven Architecture. This is where you focus on UML to do design. UML produces nice looking documentation. Some problems that plague software development are productivity and risk management. MDSD intends to address these shortcomings.
Next time I will start with the hot topic of Domain Specific Languages (DSLs).