Conventional development models refer to two sectors, public and for-p
rofit private. Massive growth of nonprofit private activity undermines
that picture. Latin American think tanks exemplify a nonprofit privat
ization that has an enormous impact on development and remolds inter-s
ectoral relationships overall. Four major dynamics account for the spe
ctacular growth of the region's nonprofit think tanks. Three push fact
ors are state repression, state weakness, and public university proble
ms, and, as epitomized by financial supply, a pull factor is also cruc
ial to attract nonprofit growth. To conceptualize its findings, this a
rticle considers public failure theory. Unhelpful regarding the pull f
actor, the theory otherwise works reasonably well, especially where th
ere is visible movement from the public to the nonprofit sector. Beyon
d that, the evidence suggests ways to broaden the theory. Even a broad
ened formulation cannot fully capture the remarkable diversity and vit
ality of the growth in Latin America's think tanks. But we are able to
identify and analyze the key growth factors that blend together to pr
oduce particular institutional and national configurations.