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Located in the Balkan Peninsula, it is bounded to the north and the west by Croatia and the Adriatic Sea and to the east by Serbia and Montenegro. Its economy is one of the poorest in Europe.

The government is headed by a president, who shares his role under a rotating system with two other people (each of the three belongs to a different ethnic group). There is a bicameral Parliament, made up of the House of Representatives (42 members) and the House of Peoples (15 members).

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