This CAF report identifies chronic economic stagnation and low productivity as the fundamental obstacles to development in Latin America and the Caribbean, highlighting that regional per capita income has remained at just a quarter of the level in the United States over the last six decades. To reverse this trend, the document proposes a strategic agenda based on the “three pillars” of productive development: innovation, to close the technology adoption gap and strengthen the capacity to absorb global knowledge; integration, in order to reduce trade costs and achieve more sophisticated integration into global value chains; and formalization, as an essential means of unlocking human capital potential and improving resource allocation in labor-intensive sectors. The analysis places these challenges in the context of demographic, digital, and green transitions, noting that the region's wealth of natural resources, such as critical minerals and clean energy, offers opportunities for a new model of sustainable growth. Finally, it highlights the need to strengthen the fiscal and regulatory capacities of the state and proposes a renewed strategic alliance with the European Union as a key lever for closing investment and knowledge gaps.