The new economy needs a development model that is people-centric, not production-driven. Emphasis, therefore, must be on the development of human capital. But, public education and health are not enough to break out of the middle-economy track. The world’s most pressing problems, from climate change to the future of work are all manifestations of inequality. The role of government is to not only be a more effective provider of learning and health, but also to be an agent for greater access to opportunity and changing patterns of ownership at all levels.