In today’s Latin America, governments implementing public policies for development and against poverty and inequality meet with social movements that engage in practices for social change, poverty reduction, and empowering. In this context, we analyze the interplay between both processes, describing its conflicts in three specific dimensions: the material, the democratic, and the environmental. Social movements are permanently contesting and challenging public policy when they autonomously appropriate public policy resources, yet, governments respond with criminalization and cooptation strategies. In a setting where social conflict takes place in response to existing poverty and inequality levels, movements challenge development and poverty reduction projects of an ‘assistentialist’ and extractivist nature, and propose an integral understanding of development and the emergence of new relationships among individuals, society, and the environment.