In confronting neoliberal models and their emphasis on state–market alliances, new developmentalism has emerged as a powerful alternative, received with enthusiasm by progressive forces. It has certainly been responsible for unquestionable advances in fighting inequalities, particularly in Latin America where it has been adopted by leftist governments from 2000 on. However, it has been unable to redefine the old formula of a ‘strong, self-sufficient state’ and the centralising political practices characteristic of the ‘old’ developmentalism. Therefore, the article argues that the new developmental state has ended up by draining the potential of participatory democracy, which had brought together hopes for inclusive and sustainable development policies and had announced a new alliance between state and society through which rights could be ensured and democracy deepened.