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Abstract: This paper addresses why neoliberal policies of the United States have failed to spur broad-based economic development, and why they have not consolidated stable liberal democracy in Latin America. The author argues that the United States must reevaluate its foreign policy in order to accomplish its goals and maintain its influence in the region. This will mean engaging more moderate leftist leaders in Latin America and adopting changes to its trade policy. Above all, the United States should not revert back to its unilateral interventionist policies of the past. [Copyright &y& Elsevier]