A true and lasting response to the challenges raised in this 2012 Development Co-operation Report 2012 can only come about by transitioning to economic development that is more efficient in resource use, limits environmental degradation and puts a premium on equity. In this chapter, the author argues that economic progress without environmental and social progress cannot lead to a progressive, equitable, poverty-free future. He stresses the importance, on the one hand, of ensuring that aid strategically and coherently promotes the three dimensions of sustainable development equally. He also argues that the global economy should be recalibrated in many ways: removing damaging subsidies; reforming fiscal systems to provide long-term incentives for sustainable production, consumption and investment; establishing appropriate price signals to capture the critical role played by environmental resources and services; and using new measurements to gauge progress that take into account human well-being, equity, natural capital and the environment.