Cover; Contents; Foreword; Acknowledgments; Abbreviations; Overview; Changes at the center of the world economy; Figures; O.1 The rise of the South; O.2 The South's share of global trade flows; O.3 The South's share of global capital inflows; O.4 The global trade network; O.5 Similarity and systemic importance in the global trade network; O.6 The global financial network for syndicated bank loans; O.7 Regional clustering in global value chains, 2011; O.8 Density maps of regional trade networks; O.9 Composition of foreign assets and liabilities in the South, by region. How the rise of the South conditioned development in Latin America and the Caribbean: An interpretationO. 10 Saving, investment, and the current account; O.11 Real U.S. interest rates; O.12 Terms of trade within Latin America and the Caribbean; O.13 Export similarity indexes in manufacturing in Brazil and Mexico; O.14 Effects of the rise of China on gross exports from Latin America and the Caribbean, by sector, 2001-11 average; O.15 Sectoral composition of cross-border flows in Latin America and the Caribbean, 2003-2011 average. O.16 Exports of intermediate goods as share of total exports in three global value chainsO. 17 Backward and forward participation in global value chains, 2011; O.18 Employment shares in the formal and informal manufacturing sectors of Argentina, Brazil, and Mexico; O.19 Evolution of wages in Brazil relative to wages in Mexico; O.20 Responses to a positive global supply shock in Latin America and the Caribbean and other emerging market regions; O.21 Responses to a global monetary easing in Latin America and the Caribbean and other emerging market regions. O.22 Domestic saving, real exchange rates, and sovereign risk ratings, 1990-2012 averageO. 23 Saving and real exchange rate gaps for higher-income countries in Latin America and the Caribbean; O.24 Country ratings for selected country groups; O.25 Sovereign risk rating, growth, and investment gaps, 1990-2012; Changing world, new priorities; Structure of the report; Annex OA; Tables; OA. 1 Country group composition; Notes; References; 1. Three Global Trends That Shaped Latin American and Caribbean Development at the Dawn of the Twenty-First Century. Set of Facts 1: The weight of the South in the global economy has risen, particularly after 2000, but its rise has not been even across sectors or types of flows1.1 Rise of the South: Share of world GDP, trade, and capital flows.; 1.2 Sectoral composition of trade flows; 1.3 Sectoral composition of financial flows across regions; 1.4 Composition of global financial flows across sectors; 1.5 Composition of foreign assets and liabilities in the South, by region; Set of Facts 2: The rise of the South has had asymmetric effects on global trade and financial networks.