Latin America and the Caribbean is facing a number of development traps that pose significant obstacles to a more productive, inclusive and sustainable future. This development crisis coincides with an international context that has changed considerably in the last decade —both on the geo-economic and geopolitical fronts— and which is shifting towards a new set of rules for trade and investment. For its fortieth session, the Economic Commission for Latin America and the Caribbean (ECLAC) is putting forward a new proposal analysing three transformations that are vital for moving towards a new development model: (i) a productive transformation for higher, sustained, inclusive and sustainable growth; (ii) a transformation to reduce inequality and foster inclusion and social mobility; and (iii) a transformation to boost sustainability and combat climate change. This document includes various proposals for carrying out these transformations, with a focus on how to manage them so as to overcome the development traps in the region. Managing these transformations requires improved governance; strengthening of the technical, operational, political and prospective capabilities of institutions; and the promotion of social dialogue.