This paper presents and discusses the calculation of a new competitiveness index for 18 countries in Latin America. The position of each country in our index is based on the comparison of 8 indicators in four dimensions and the weight thereof throughout the years 1999-2010. The system of weights allows time and dimensional preference. The dimensions analyzed are economic, social, institutional and technological. The indicators used are: real GDP per capita, net foreign direct investment per

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... ta, net migration rate, income per capita, the rate of property rights, the level of freedom, corruption, investment in research and development per GDP%, and labour force with tertiary education. The competitiveness index of selected Latin-American countries was calculated based on the sequence and value of these indicators, resulting in a ranking of these countries. Other factors such as security, infrastructure, the role of technology, education, liberalization of the economy, and factors associated with investments in human capital were also post examined. This rather simple and easily computable index yields very good results and is comparable with other indices. We hold the idea that other indices of competitiveness calculated in the world are too complicated and dont cover all the countries. In this paper we have tried to demonstrate that it is possible to find other, simple methods of how to explain and calculate a competitiveness index. Index Terms-Latin america, competitiveness index, economic development, institutions.