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The paper addresses new challenges and identifies starting points for development theory following recent debates in Latin America in the realm of “new or neo-extractivism”. It focuses on the concept of neo-extractivism and the context of its emergence, and the changing role of the state and democracy. Looking at a number of social and economic indicators, we find that, even after considering differences between countries, (neo-)extractivism is not merely a temporary economic strategy in the region. Instead, it exhibits features of a consolidated development project. Empirical evidence from the region shows the fundamental implications of resource-based development paths in politics, social relations and democracy. To grasp these implications conceptually, we argue for a shift in theoretical perspectives, related to the link between development and resource extraction.