Latin America is emerging from a century of transformation - from a traditional agrarian to an urban industrial economy - where countries have taken diverse historical paths. Some have almost completed this transformation, others are taking early steps, and most are living through it. State-led transition has followed two successive development strategies. From the 1920s to the 1980s, state developmentalism, for the most part, successfully assumed the twin challenges of economic and social progress. In the final decades of the century, Latin American states adopted the policies of the Washington consensus, which emphasized the importance of business in the framework of globalization, benefiting the affluent few. However, an unambiguous shift in direction has been taking place in Latin America since the 1997 economic crisis. This article suggests that a new developmental welfare state model is in the making. How will it evolve over the wider space of an increasingly integrated Latin America?.