In the 1990s, international financial multilateral agencies promoted changes in the way health systems were financed and organized. Three decades later, equity and efficiency are still central problems of the health systems in developing countries. The present article focuses on the health sector reforms introduced in Latin America in order to draw policy lessons for Spanish aid. One of those reforms, the introduction of competition in health insurance management and provision and the increase of private sector participation - managed competition -, was widely promoted, despite the lack of empirical evidence and the opposition from public and scientific sectors. Years after its implementation, health system financing is still inequitable and access to health services is far from universal and adequate due to the barriers imposed by insurers, among other reasons. Moreover, segmentation in healthcare provision and inefficiency persist in healthcare systems that are expensive to manage. The Spanish state, currently undergoing a process of transformation of its aid model, should focus its efforts on redressing international agencies' policies toward strengthening public health systems in the region and, at the same time, toward improving the quantity and quality of aid at country level, favoring the leadership of receiving countries.