Bolivia is a highly indebted lower-middle income country with a population of around 8 million people. The seventies and early eighties were marked by instability. Since 1985, the country has made remarkable progress in key areas of reform. It made the transition to democracy in 1982, and there have been three democratically elected governments. Bolivia was one of Latin America's early adjusters, undertaking a highly effective macroeconomic adjustment program in the mid-1980s.

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