Latin America’s New Insertion in the World Economy examines the contributions governments can make in order to stimulate efficient and export-orientated manufacturing production in small and medium-sized economies in Latin America in the coming years. The study focuses on the progress that has been made recently to correct policy failures of the past, the obstacles and bottlenecks that have occurred in the process of economic transition and the challenges the selected countries face in order to stimulate in a systematic way the development of an internationally competitive manufacturing sector.