ABSTRACT
Bolivia has had one of the most tempestuous, unstable, and chaotic histories in ail of Latin America. The predominance of the native population and its separation from Europeanized Bolivia was made possible in part by the country's geographic fragmentation and extreme climates. The political regime formally recognized the "multiethnic and pluricultural" nature of Bolivian society and the endurance of forms of political organization outside of the state. Banzer and Paz Estenssoro signed a "Pact for Democracy" on October 17, 1985, committing their parties to work in Congress to pass necessary economic reforms while using the executive's control of force to suppress the capacity of a weakened labor movement to obstruct reform. Bolivia's extreme ethnic diversity has impeded the construction of a common national identity. Elections held one year later failed to produce the required absolute majority. Bolivia is heavily dependent on foreign assistance, particularly from the United States.
