 Quite we need to go in beyond traditional ace and the constitutional loans and I'll provide a theoretical and a rationale for that and I'll talk about new sources for financial development and our first structure transformation in the developing world In a normal but no poverty is the number one goals in SDGs And the way to achieve that is to create job and that's goal number eight For the able people and then to create and to increase their level productivity through technology innovation in that upgrading diversification and infrastructure improvement that's SDG line and it developing country had the late commerce advantages in technology innovation in that operating and As a potentially they should be able to grow faster than I'm country and Became become prosperous and achieve Converged to the high income country certainly poverty will be eliminated however, many birth country has been trapped in low income status and In our poverty is still one of the major challenges in the world In spite of their own effort and a multilateral development institution support And we know that investment is essential for technology innovation in that upgrading and infrastructure improvement and we know after the second world world many multilateral and Violator Institute development institutions were set up to provide development ace and Concentration alone to the developing country and theoretically This kind of ace and loans can expand the capital base and allow them to make more investment for technology innovation in that upgrading infrastructure investment Then they should be able to you know grow faster and become prosperous However, most of the American country has been trapped in poverty low income status And so it's essential for us to have a little bit of we thinking fine Development assistance, you know are not successful and then do we have a new way to improve the development assistance? and I think the idea is the most important and You know from what I see the reason why is by the in our individual national effort and Global support the developing country did not succeed in in our reducing poverty and so on it's because they are guided by wrong ideas and You know the development ideas development economics was a new sub-discipline It did not come into exist only after the second world world and we know that the first execution of development economics is Structuralism try to advise the developing country to you know industrialize in order to catch up the high income country and they argue that the government should play Active role to mobile our resources and to support the modern industries, but they fail and Then in 1980 1990 the idea changed to nearly believe them I think the reason why the developing country did not perform well was because of the market government values and advise the country to you know have privatization marketization stabilization in order to allow market to function Again the country follow this approach the economy also perform poorly and during this period of time There were a few success for developing economies and you'll find there are policy framework Basically was considered as wrong policies from the mainstream ideas for example in the 1950 1960s The idea was to develop you know modern industries, but there are few successful is Asian economy They started ways not on not in persecution, but their father expert for motion not a developed large-scale industry They started traditional small-scale labor intensive and in the 1980 1990 during the transition period China Vietnam Cambodia did quite well, but they did not follow the Washington consensus They started with some kind of gradual dual track, you know approach and again at that time those kind of gradual dual track Transition was considered as the worst possible approach from the neoliberal, but it was successful So that's the reason why I think that we need to rethink the you know idea of each guy our policy effort And the idea that I like to promote is a new addition of development economics, which I call new structural economics And it's an application of modern, you know neoclassical approach to study the Determinants and the impact of structure and structure in pollution in the process of economic development by convention I should call this as structural economics, but to distinguish from the structuralism I call new structural economics The main idea is that economic structure including technology in the tree institution and so on are indulgements Indulgent or to the endowment and its structure endowment I mean labor natural resources and capital that are available in any country at any time and The fire endowments and its structure are so important because endowments is the total budget of a country at any specific time And it is a structure if you are abundant in labor force Never which will be law if you're abundant in capital capital will be relative Expensive and this kind of rated prices were determining the complete advantage of an economy and it's basically time And if you develop your technology in the tree according to your compare advantages Then the federal cost of production will be the lowest and this is what should be considered the best in that restructure you have and So for me the best industrial structure and technology structures also in darkness But for us sending the development want to raise the income how to raise the income certainly You need to move from in our low value edit manufacturing That's a very intensive to higher value edit, you know manufacturing and so on But as industrial structure is in darkness if you want to move up the industrial scale, you know the latest you need to acquire the capitals and And and if you are came on the capitals you change your endowment structure Then you will have a natural upgrading in its process You also need to improve infrastructure because when you move to market the intense industry there without power They need to have a larger market network and so on so you also need to improve the infrastructure in order to reduce transaction cost and I make the Industry you have competitive one to two into very competitive in international and the domestic economy And when you see a country was trapped in low income status or medium income status Let me this country do not have this kind of dynamic structure transformation But who will be the best way to? Kickstart this kind of Dynamical process when we know that that structure is industrial to endowments And my argument is that to develop your economy according to your competitive one is as any good anytime determined by your endowments Because if you do that and especially with you know You know at core infrastructure You can turn competitive one to just into competitiveness and then you can have a larger market You can create profit you can accumulate capitals and I can prove if you follow this approach kept accumulation of your parties and it will provide a condition for the industrial upgrading for the job creation for the property reduction and I did to develop a economy according to your compare advantage is a term only understandable to Economist for entrepreneur. They'd like to have profit and how to make the spontaneous choice or entrepreneur Become to be consistent with your compare one to G. We need to have one institution That is competitive market so you can have a relative prices, please can rewrite relative abundance or forget about this You might get so important can government also need yes government is also named because in the process in the track rating Technological innovation in nature of diversification You need to you know solve the usual coordination You also need to improve the infrastructure institutions and those are you know, we'll have a market values And so you also need to have a precipitation state and If the development assistance is used to support this kind of structure transformation and now To support this kind of structure and transformation to expand it kept the base for a falsity state to open kind of mining country Then the development assistant will be very effective And from this we understand how come the structuralism which was so popular in 1956 he failed because they talk to run sectors They talk it the kept the intensive of one sectors which the country did not have come her advantages and as a result The firm that in this kind of private sectors were not viable and the government would have to you know Create all kind of distortion to support them and as a result in of those kind of sectors become very elephant And the economic preference was poor From this we also understand how come Washington consensus did not work Because Washington consensus did not Recognize that the distortions were endangering to the need or protect those kind of sector in the older priorities And if you remove all the distortion through the structure RP and advisor by Washington consensus Those kind of will go bankrupt create a huge number of unemployment and then you are not going to have social political stability Not only so some of those kind of Firm in these older sectors very captain nation They are also we get you to national defense and if you are wanting to go bankrupt like in a Ukraine Then you're not going to have any ability to protect your shop And and and and that's one reason why the Washington consensus did not work And also watching the consensus go against the government to have some kind of for citation role for specific studies in the structures transformation And so that's reason why many countries face the issue of de-initialization Because their industry went bankrupt, but they need that will not emerge and this also Explained how come and at the time in the 1980 1990s Most of the development aids were used to do support the structural adjustment to support this kind of Structure transformation to the rule the government in our Interventions, but they did not play the role to facilitate their structure transformation and after the 1990s because of values of this, you know structural adjustment law international development Assistant equal in the market later on and a bilateral change it to a human in a human humanitarian Aids for example education hair also gender governance and so on But those are not related directly to support the structure transformation And that's the reason why we see the de-initialization. We see the public still a big issue And then how come China may not mean a few you know Transition economy they can be successful by the dual track because the dual track on the one hand They provide consistent Continuous support to the all sectors to manage stability and they play active role to facilitate the growth of the new sector to the structure transformation and so on and so they can achieve competitiveness and dynamic economic growth and they can also benefit from the Like come as our one teachers and the new sectors when they grow very rapid the community capital then you are going to have a natural Grading in a natural grading they can benefit from the late commons are the one teachers and the government pray for sedition No further in the tribe reading and so they can you know grow dynamically So this strategy transition strategies in the 1980s and 1990 seem to be a consensus among the International Academics community to be the worst possible approach now turn up to be the best approach And I made this kind of dream come work now, you know if you want to make a different development assistant to be Successful in terms of structure transformation job creation property reduction You need to expand the capital base for the government to support the structure transformation In terms of providing infrastructure in terms of you know for sedition and that's why I'm waiting most kind of thing And I in coming to now if we look in the futures In the past The savings in the high income country advance country and also in the developing country before 2000 was about the same both countries was about 25% of their GDP But after the 2000 the developing country saving increase a lot you know and developed countries in our saving Decrines substantially and especially we Include China then the contribution or saving from the developing country by the time 2010 already reached more than 50% and Developed country their contribution, you know drop down to about 15% so that means there will be more funding for supporting development from the emerging country from the developing world and Then you look into the global investment in a before 2000 about 80% of the investment In the world came from high income country But after 2000 the situation changes by the time of 2010 We developed country contribute about 50% of global investment and developing country You know including China also country about 50% But if you equals China the developing country also contribute about 2728% but looking in the future by the time of 2030 most likely Develop developed country other one country will only have about 20% of the investment in the world But the developing country, you know, if you accrue China, they will contribute to about 45% and if you include China they will contribute to about 80% So that means looking in the futures more funds will be coming from the developing country I think the projection is very consistent with Richard in our findings And especially China China currently is the second largest economy in the world China is the largest trading country in the world and most likely by China by the time of 20s You know 25 China will be a high income country and certainly China need to contribute more to the global you know development systems and China announced a lot of programs like bare road initiative like AIIB and China also pledged to give more funding in the UN 2015 and our Meetings and all and so on and especially in a four-car meeting that in 2015 China pledged to provide 60 billion US dollars in three years and in just a few days ago China Pledge to give another 50 billion to the development systems, but there's something different The emerging dollars They provide funding to promote something different in the past mostly in the you know Development and a grant will concession alone But for the emerging dollars including China's all you know more of the fund will be coming from the official an other official flow in addition to the grant and concession alone were official like loans or official, you know like Investment those kind of things so that related to more of the long and investment, but they are targeting for the structure transformation so that can fail conventional North South development aids that buy you know back and so on They are based on development experience in the developed country You know developing developing countries think are important then they use those kind of fun in concession alone or aids to support what kind of activity and and but they are untied to the trade Untied to their structure transformation But if you look in the South South Corporation Including from China India or Turkey and so on. They are more coming to you know trade or investment in infrastructure in industries and certainly they also based on their own experience about what is important and We are for city the mall to support the developing country to utilize their compartment advantages So that should be more available to you know structure transformation Jack creation and to utilize the possibility of in a tree as well as make them as advantages And so let me conclude. I you know published a book 2017 on this and the conclusion is that development assistance will be helpful for development if they are used for expanding the government resources for facilitation structure transformations and because our conventional development aids and constitutional borrowings to the poor in our heads up had a poor development result because They are not really targeting directly to help the country to have a successful structure transformation and so we need to go to you know New idea and also we also net need to tap into the new resources and luckily the new resources are more likely to you know to use force support structure transformation and But to make that we need to expand the definition and as long as any kind of fun can be used to facilitate the structure transformation in Increase it in a sustainable way those kind of thing will help us to achieve the goal a set up for the international development communities So if we follow the new ideas, maybe we have a chance to achieve the SPC by the time of time is