The economics theory based on the western experience can no longer interpret the phenomena of economic development in developing countries and regions at the present time. The emergence of the new Structural Economics is aimed to better understand the root cause behind the current economic status quo, said Lin Yifu, honorary president of Peking University and former Vice President of World Bank at the "New Structural Economics Dialogue" of the Boao Forum for Asia Annual Conference 2013.

According to Lin, the developing countries do not have the modernized industries as the developed countries. In Structuralism, the developing countries ought to mobilize all forces to overcome difficulties under the guidance of the governments to set up these industries. However, after generations' efforts of either socialist countries or non-socialist countries, it ended up with economic stagnation，continued crisis and even widened gap compared with the developed countries.

And the New Realism asserted that the poor economic development resulted from too much government intervention without a systematic market mechanism. Therefore, it suggests the developing countries conduct market privatization model, which implies they should totally rely on the market without the interference of the government. Unfortunately, 30 years have elapsed, the average growth rate of the developing countries became even lower than previously with even higher frequency of crisis.

"If the previous theories cannot help us understand the reasons behind the phenomena of the entire world economy, and neither any government, enterprise nor individual can make right decisions to help us reach our goal, it is time for us to create some new solutions and theories. And thus how the New Structurelism came into being," said Lin.

He stressed that the developing countries should not copy the experience of the developed countries. Instead, they should adopt measures tailored to their own problems. "This is common sense，but things going against it are still happening now", he said. 　

Lin also said, over half a century, great achievements have been made in China in economic development, making a record in the world history of modernization. So it is inevitable that some problems and setbacks occurred. And it takes great courage and wisdom for China to face the problems home and abroad and explore its own path of development.

The Boao Forum for Asia Annual Conference was held between April 6 to 8, 2013 with the theme of “Asia Seeking Development for All: Restructuring, Responsibility and Cooperation."