Along this article, we sought to apprehend the logic underlying the triangular relation between international economic powers, structural reforms of the State, and democracy in Latin America. The study is based on the findings expressed in the Report on "A Democracia na América Latina: Rumo a uma Democracia de Cidadãs e Cidadãos" ["Democracy in Latin America: towards a Democracy of Female and Male Citizens"] (PNUD, 2004). The data subject to scrutiny refer to three States -Uruguay, Brazil and Honduras. Two hypotheses have been tested: (1) structural reforms of the State in Latin America have been conditioned by the dynamics of the international economy; and (2) the democracy that is possible in Latin America is a formalist democracy, and it does not inhibit the rational choice of market oriented economic agents. The conclusions of this work are discussed in the light of political theories and international relations.