The chapter aims to describe the IPE of development finance through the lenses of the new theory of sustainable development plus a comparative analysis tracking the evolution of development sources. In order to tackle the first issue, it profits from recent theoretical contributions in areas such as finance and governance. Then it explains why neither traditional Western sources nor new Southern (Chinese) funds might prevent Latin American countries from reaching a sustainable path. In a third and last section, it evaluates environmental and social challenges in the region – particularly highlighting the threat climate change poses to the region.