This work constitutes a critique of traditional population redistribution policies and a reflection on the relationship between economic development, productivity, and regional factors, with particular reference to Latin America and the Caribbean. The article is organized around 3 main points: an analysis of the sources of competitiveness and productive efficiency, a discussion of the relationship between spatial aspects and productivity and competitiveness, and an assessment of the implications of these factors for regional policies and decentralization. Latin America and the Caribbean suffer from a shrinking importance in the world economy and from technological backwardness. To increase the well being of their populations systematically and deliberately foster technical progress. Authentic competitiveness, sustained over time, should not be confused with the spurious competitiveness resulting from low wage levels of nonsustainable exploitation of natural resources. The new technological model requires constant learning and improvement to adapt products to changing needs. Active participation is required from all workers; the continuous improvement is based on human capital. The technological changes and transformations in the productive structure that will be required to improve productivity in Latin America and the Caribbean can significantly alter comparative regional advantages, the patterns of territorial use, and the spatial division of labor. The role of technological changes and of the organization of production must thus be considered in analyses of regional dynamics. Regional development strategies must be reexamined in light of the obsolescence of some traditional elements of regional policy. The factors influencing the location of productive activities in the context of technological development also affect population distribution and can be used to understand trends in population distribution through effects on employment.