This document discusses policy analysis of nonformal education by defining terms and then applying them to the specific case of Bolivia. A definition of policy is proposed and policy analysis is discussed in terms of political analysis and institutional analysis. The necessity for nonformal education is explored through historical background and current need, 13 characteristics of nonformal education are listed, and a graphic presentation showing the relationship between nonformal education and general socioeconomic development is included. Policy sectors and policy arenas are defined, and nonformal education is discussed in terms of a policy arena. Policy analysis of Bolivian nonformal education is discussed in terms of the present political configuration, current distribution of educational goods, and the aspirations of the Bolivian elite. Evaluation of the success of nonformal education in Bolivia is made through examining Bolivian national policies, institutions and their capacities, media, grassroots organizations, and governmental support systems. It is suggested that the document may be useful to those interested in comparative and international education through its definition of policy and its relationship to public concern and the distribution of power within a society. Two tables supplement the analysis, and notes and references are appended. (LH)