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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Apple acquires music service Lala 05 Dec 2009 Sunshine, sewage to power cities of the future 30 Nov 2009 The FBI agent inside the Galleon case 04 Dec 2009 Six more U.S. banks closed 05 Dec 2009 Poland okays forcible castration for pedophiles 25 Sep 2009 Number of kids in daycare may affect asthma risk 02 Dec 2009 Guatemala coffee growers see Starbucks buying slow 04 Dec 2009 Hermit North Korea faces UN test over human rights 05 Dec 2009 Sunshine, sewage to power cities of the future 30 Nov 2009 Bolivia's Morales seen cruising to re-election Eduardo Garcia and Kevin Gray LA PAZ Sun Dec 6, 2009 1:02am EST Related News UPDATE 1-Repsol to boost natural gas output in Bolivia Thu, Nov 26 2009 LA PAZ (Reuters) - Bolivian President Evo Morales, whose leftist economic policies have made him broadly popular with the poor but angered business leaders, is expected to win re-election on Sunday, allowing him to expand state control over the economy. World A victory by Morales would solidify his dominance over Bolivian politics and further weaken a divided conservative opposition tied to the country's business elite. Opinion polls show Morales, an ally of Venezuelan President Hugo Chavez, taking more than 50 percent of the vote and his Movement Toward Socialism party could win control of Congress. Morales, Bolivia's first indigenous president, nationalized important sectors of the economy in his first term, including energy and mining companies, which generated a windfall for state coffers that he has used to boost social spending. The cash payments to benefit such groups as school children and retirees have added to his popularity among Bolivia's disenfranchised Indian majority that celebrated his defeat of the country's long-ruling traditional parties four years ago. "There are two roads: continue with change or return to the past," Morales told tens of thousands of supporters at his final campaign rally. A former llama herder and coca leaf farmer raised in extreme poverty, Morales faces two conservative rivals, Manfred Reyes Villa, a former governor and army captain, and wealthy cement magnate Samuel Doria Medina. Morales has cast himself as the only candidate able to bring prosperity to the poor, and many Bolivians living in rural areas identify strongly with his humble origins. He successfully pushed an overhaul of the constitution in a referendum earlier this year that allowed him to seek a previously prohibited second term, following moves by other Latin American leaders who have sought to extend term limits. Morales vows to extend the hand of the state deeper into Bolivia's gas- and mineral-rich economy to redistribute wealth in South America's poorest country. He plans to launch state-run paper, cement and drug companies and develop large lithium, iron and petrochemical projects to generate more revenue for welfare programs. Critics charge the cash handouts are a way of buying political support and do little to lift Bolivians permanently out of poverty. The government argues the numbers of poor are falling and the subsidies have spurred economic growth during the global economic slowdown. Some 60 percent of Bolivians live in poverty even though Bolivia is home to the second-largest deposits of natural gas in South America after Venezuela. The Bolivian economy is expected to grow 2.8 percent this year, the highest rate in Latin America, according to the International Monetary Fund. TONED-DOWN RHETORIC Morales' opponents maintain that his policy of asserting greater state control over the economy is scaring away much-needed foreign investment. His repeated promises to increase production of natural gas, the country's main revenue earner, have not materialized because of a lack of investment in the sector. Critics also say Morales, an Aymara Indian, has fueled political polarization between the Andean west, where indigenous groups are a majority, and eastern regions where violent anti-government protests broke out last year. Morales, a self-avowed admirer of Cuban revolution leader Fidel Castro, is a fierce critic of the United States, which he calls the U.S. "empire" in fiery speeches railing against capitalism. But he has moderated his rhetoric on the campaign trail in a bid to appeal to the middle class and voters in eastern regions, whose support he needs to win control of Congress. Reyes Villa, Morales' leading rival, has lashed out at what he calls Morales' heavy-handed governing style and said the Bolivian leader was out to accumulate more power. "What's in play in this election is democracy," he said. (Editing by Anthony Boadle) World More from Reuters Ex-Calpers staff ties with financier probed: report SAN FRANCISCO (Reuters) - U.S. security regulators are investigating possible ties between a former chief executive of California pension fund Calpers and a former Calpers board member, and a financier who has pleaded guilty in a New York pension fund corruption case, The Sacramento Bee said on Saturday, citing court documents. Protesters rally against 9/11 trial set for New York Sarah Palin in the belly of the beast: Washington Japan to give JAL $7.7 billion loan guarantee: report Firework blaze in Russian nightclub kills at least 109 | Video No intelligence for years on bin Laden hideout: Gates » More Top News special report: Most feared man on Wall St? FBI Special Agent B.J. Kang was there for the arrests of Bernie Madoff and Raj Rajaratnam. Who's next? According to court documents and industry sources, Kang may be focusing in on Steven Cohen and hedge fund SAC Capital Advisors. Full Article Video: FBI may be eyeing SAC capital Five facts about SAC Capital Advisors corporate crime Our new home We’ve rebuilt Reuters.com to make the site faster and easier to use, whether you want a quick glance at the top headlines or a longer deep dive into a topic that’s important to you. Full Article Video Tour © Copyright 2009 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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