Ecuador's President Rafael Correa won broad new powers in a referendum vote yesterday that allows him to push socialist reforms similar to those being forged by his allies in Venezuela and Bolivia.
Mr Correa called the vote a "historic victory", but the new constitution will unnerve investors because it increases state control over monetary and oil policy in the Opec nation and could allow the left-winger to stay in power until 2017.
"Today, Ecuador has decided on a new nation, the old structures are defeated," he told hundreds of celebrating supporters waving the green and blue flags of the government alliance in the port city of Guayaquil. "This confirms the citizens' revolution."
An early count authorised by the electoral authority showed 63 per cent of voters backed Mr Correa's proposed constitutional reforms, and Guayaquil Mayor Jaime Nebot, an influential opposition figure, said the former Catholic missionary had won.
With the new constitution in hand, Ecuador's most popular leader in a generation now has more sway over Supreme Court appointments and will control the central bank. The army will now be under firmer civilian control.
Mr Correa, who once taught in a Quechua Indian village, is popular with Ecuador's majority poor for sharing oil income via handouts and credits to small businesses.
Like fellow South American socialists Venezuelan President Hugo Chavez and President Evo Morales of Bolivia, Mr Correa wanted a new constitution to take control of the economy and increase spending on health and education.
The new constitution will erode the power of Congress and the army, which helped topple three presidents in the last decade in the poor country of 14 million people.
Investors are frightened by his threats to halt some debt payments, a drive to cut private companies out of oil profits and increased scrutiny of banks.
The Catholic Church opposes the constitution for allowing civil unions for homosexual couples. It says it also softens an abortion ban, although Mr Correa, who opposes abortion, denies that.
Reuters