“Politics”

The development of Latin American countries, particularly in recent decades, has been erratic and

insufficient. Measured by various indices, Latin America has been losing relevance in the world and

especially in relation to the emerging economies of Asia. Historical evidence seems to corroborate

that the most important conditioning factors of Latin American development were institutional

shortcomings, which prevented the creation of an adequate climate for development; technological

backwardness, which made it difficult to create more sophisticated comparative advantages, and

free trade that naturally favored the exploitation of raw materials. In these circumstances, the big

challenge for Latin American countries is how to increase savings and investment levels,

incorporate advanced technologies and improve productivity, in order to migrate from comparative

advantages based on the exploitation of raw materials comparative advantages based on the

exploitation of knowledge and technology. This Essay proposes the basics for articulating an

alternative conception of the development process and policy. Among the elements that are

considered relevant to the construction of this alternative conception would be: (a) the

transformation of the productive structure with the support of foreign investment, through the

creation of advantages higher productivity comparisons, technological upgrade and insertion into

global value chains; (b) strengthening institutionality and establishing "alternative realities" to

create appropriate conditions for the efficient management of economic operators; and (c) the

adoption of deliberate development policies, to make the transformation of the productive structure

feasibl and to ensure sustainable and quality development.