This article is a translated version of “Mind the Transformation Trap. Laying the Political Foundation for Sustainable Development” which was introduced in November 2015 in the context of the Asia-Europe Economy of Tomorrow project. The main contents are as follows:

- The transformation trap is the inability to resolve the political, social and economic contradictions typical to transformation societies. Amidst social and political conflict, what is necessary to graduate to the next stage of development may not be implementable politically.

- A progressive transformation project should therefore focus on laying the social foundation for sustainable development through an inclusive compromise between established and emerging classes.

- The development narrative needs to shift from communalist patronage and identity politics to innovation and empowerment through the provision of full capabilities for all.

- The Good Society with full capabilities for all can bring together a broad societal coalition to shape this Great Transformation.