Development economists in the post WWII period emphasised structural change but attributed the lack thereof to market failures and proposed import substitution strategies. By the 1970s, the Washington Consensus focused on government failures and advocated market liberalisation. The new structural economics represents a third wave of development thinking. It proposes markets as the basic institution for resource allocation and the state playing a facilitation role for structural change to achieve dynamic development. Justin Yifu Lin is honorary dean and professor of the National School of Development at Peking University. He served as chief economist and senior vice president of the World Bank in 2008-2012 and was adjunct professor at ANU in the 1990s. His many books include Demystifying the Chinese Economy, the Quest for Prosperity, and the New Structural Economics. He is a corresponding fellow of British Academy and a fellow of the World Academy of Sciences for the Developing World. This lecture is presented by the Arndt-Corden Department of Economics at Crawford School of Public Policy at The Australian National University.