This case study of Bolivia addresses the political development implications of both the first National Dialogue and PRSP process in 2000, and the current process in 2003–04. It sets out the challenges of political development in the country, referring to historical legacies, medium-term trends and relevant policy-reform agenda from the last decade. It then considers how the political background – both basic structures and short-run circumstances – affected the possible scope and character of the 2000 process, and the options announced for the PRSP revision. The paper develops an argument about the ways in which the 2000 process engaged with the fundamental challenges facing political development, and the degree to which the process had relevant impacts, directly or indirectly. We are able to make only some highly tentative and provisional observations about 2003–04, since the process is incomplete.