ABSTRACT
The foundation for sustainable development needs to be laid amid social, political and cultural conflicts rocking transformation societies. A narrow economic perspective is therefore in danger of misunderstanding the complexity of transformations. This chapter explores how deeply sustainable economic growth is intertwined with social and political development. Escaping this transformation trap requires more than a new business model, but equally the political stability necessary to implement the disruptive policies required to move up the value chain. This stability can only be produced by an inclusive compromise between established and emerging classes. Laying this social foundation for sustainable development is the essential challenge for a progressive transformation project. The Good Society with full capabilities for all can bring together a broad societal coalition to shape the Great Transformations of today. East Asia's spectacular rise is claimed by rival schools of development economics.
