Is the CLR a virtual machine?

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I read a book which referred to the .net CLR as a virtual machine? Can anyone justify this? What is the reason we need the concept of virtual machines on some development platforms?

Isn't it possible to develop a native framework [one without virtual machine] that is fully object oriented and as powerful as .net?

The book which refers to CLR as virtual machine is "Professional .Net Framework 2.0".

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