Bolivia's richest region votes for autonomy

Bolivia's President, Evo Morales, is facing the most serious challenge to his left-wing leadership after the country's richest state voted for autonomy in a poll that the government said was illegal.

The celebrations in Santa Cruz, where hundreds of cars adorned with green and white regional flags jammed the streets after the referendum victory, are likely to be repeated in the neighbouring provinces of Tarija, Beni and Pando, which are also set to vote on loosening ties with the populist national government.

The autonomy movement has replaced traditional opposition in Bolivia and the confrontation is being closely watched for any indications of a push back against the so-called pink tide of left-wing and indigenous leaders who have swept to power in Latin America.

"We have placed the first stones for a cathedral of liberty, democracy and a Bolivia of autonomous regions," claimed Ruben Costas, the prefect of Santa Cruz. "We should look for a grand national consensus ... to strengthen the institutions of the republic and legal security for all Bolivians."

Mr Costas was flanked by colleagues from the other three dissenting provinces. Their aspirations for greater autonomy are also shared by local governments in Cochabamba and Chuquisaca provinces, who have still to decide on a referendum.

Actually implementing the autonomy statutes will be difficult, because the government maintains control over most mechanisms such as public servants' salaries. But in Santa Cruz they hope that the popular vote will force the government's hand. "If the 'yes' vote is really as impressive as it seems, then the government must make some major changes," said Fernando Valdivia, a government supporter who heads a local NGO. He said Mr Morales will be forced to replace his most controversial ministers and may even have to rethink a proposed new constitution.

The vote in Santa Cruz was deemed illegal by the government of Mr Morales and lacked the approval of the national electoral court. The President called the referendum a "complete failure" and said the proposed statute for autonomy was "separatist and divisionist". He also insisted that the turnout was low and proved that many of those opposed to the referendum considered it unconstitutional and stayed at home. The majority in favour of the autonomy proposal was 85 to 15 per cent, according to preliminary results.

The new constitution is at the source of the regional discontent with the central government. Its strong pro-indigenous and socialist content and the controversial way in which it was approved – inside an army barracks – have made it a rallying point for opposition forces across the country. A referendum on the new constitution was initially planned for Sunday, but postponed after Santa Cruz announced its own poll.

The reason for the opposition is economic more than anything else, although racist smears have tainted the arguments of both camps. In recent years Santa Cruz has grown from an outback region into Bolivia's economic powerhouse, responsible for a third of the national GDP. The region boasts 40 per cent of the country's arable land and one fifth of its gas reserves.

The Morales government is pushing for more control over those resources, claiming the benefits should go to the country's poor as a whole. The Santa Cruz government says it deserves a larger slice of the profits from fossil fuels.