It is argued that, so far, all theories of the Latin American process havebeen biased by an external approach. Examining the theoretical foundations ofthese theories, it is concluded that these cannot explain the class andproduction structures existing in the region, neither can predict the emergenceof qualitatively new phenomena. Having citicised the discourses of under development,dependency, development, and world system theories, the analysis thenproceeds with the argument that a theory of the Latin American process mustconceptualize the social organization of the continent as an entity in itself,and not as an appendage to the development of capitalism in the industrializedcountries. SUch a theory must be centered on the internal dynamics of the LatinAmerican social structure, and then assess the actual role played by capitalismand imperialism in its policy.It is argued that Latin American development, as based on a restricted,limited, and upper-class oriented type of market, and a fragmented society,is possible because it corresponds to a particular organiaation of the labourprocess, which, in turn, is the product of a particular mode of production.Thisparticular mode of production is the outcome of the fusion of different modesof production in the region. In this context, the international capitalistsystem -at its imperialist stage- is not a cause, but a profiteer and supporterof the contemporary social structure in Latin America. This particular organizationof the labour process sets the boundaries (limits) withim which LatinAmerica's social structure, political organization and organization of labourcan vary. At an abstract level, it is argued, unlike modern Marxian scholars,that even when the relations of production are the genesis of the social structure,the latter can, in some historical situations, persist after the formersubside, and adapt themselves to new forms of relations of production .It is concluded that the main barrier to development in the region lies notin its economic structure but in its social structure. Therefore, revolutionarychange there must start at the social level and not at the economic level.The thesis is a starting point for further field research, aiming to constl~ct a general theory of the social and economic reality of Latin America.