Morales, 46, broke into tears before addressing Bolivia's congress and many of the presidents of neighboring South American countries, a gathering that illustrated the region's continuing political shift toward socialism.

The former coca grower likened his historic rise to power in Bolivia, where people of Indian descent make up more than 60 percent of the population, to the end of apartheid in South Africa.

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"I was very happy to see my brothers and sisters singing in the historical Plaza Murillo and Plaza San Francisco," said Morales, referring to the celebrations attended by thousands of indigenous citizens in the capital's main squares. "Forty or 50 years ago, we did not even have the right to enter the Plaza San Francisco or the Plaza Murillo."

Morales won the election riding a wave of discontent against the elite who have traditionally ruled the country.

Massive protests in recent years have been a regular part of Bolivian life, helping to oust two presidents since 2003.

But the atmosphere of celebration in the streets that lasted deep into the night Sunday was a reflection of the widespread support Morales enjoys upon entering office. A poll released at the weekend by the Bolivian firm Apoyo put Morales' support at 74 percent - an unprecedented level in the country's recent history.

"All of the other governments we have had in this country have been corrupt and have stolen from the people," said Felix Flores, 60, of Quechua Indian descent who traveled to La Paz from Cochabamba to celebrate in Plaza San Francisco. "With all of that money they robbed, they could have created sources for jobs. Now Evo will."

A big part of Morales' message has centered on the idea of self-determination, and he has frequently criticized the United States as an "imperial power" whose interests often run counter to those of Bolivia.

The United States is Bolivia's leading provider of developmental aid, contributing US$655 million (HK$5.11 billion) between 2000 and 2004.

But Morales believes his country has been hurt by "neo-liberalism" - a term referring to the Washington- backed economic reforms that encourage free trade and a minimum of national commercial intervention. Morales labeled the policy a failure that has impoverished Bolivia while enriching foreign interests, and he vowed to protect the country from its influence.

Bolivia, with nine million citizens, remains the poorest country in South America, but it has the second-largest reserves of natural gas on the continent.

Morales has pledged to nationalize the country's fuel industry and woo investment from Latin America and Europe to industrialize the sector.

Expectations for change run high among his supporters, and Morales promised to convene a representative assembly to rewrite the country's constitution to more equitably distribute political power.

He has tried to mollify concerns of international investors by promising not to seize private property when nationalizing the fuel sector.

He has also said he wants to decriminalize the growth of coca and refocus the fight against drugs on those who turn the crop into cocaine.

"The fight against narco-trafficking, against drugs, against cocaine, cannot be an excuse for the government of the United States to dominate our communities," he told the crowd, a number of whom chewed coca leaves as he spoke.

Many analysts suggest Morales' frequent jabs at the US are rooted specifically to his experience as a coca farmer and - unlike Venezuela's Hugo Chavez and Cuba's Fidel Castro - less to a specific political ideology.

But many of his supporters already are linking Morales to the two leaders. Morales labels the two as inspirations. In Plaza San Francisco, vendors enjoyed brisk business selling T-shirts with the names of a socialist icon and three presidents printed in simple block letters on the front: "Che, Fidel, Chavez, Evo."

Bolivia is the latest in a line of South American countries which have elected presidential candidates that come from socialist or unionist backgrounds.

Chile earlier this month elected socialist Michelle Bachelet to succeed Ricardo Lagos, another socialist who embraced free trade as a way to fund increased social spending in his country.

Brazil, Argentina and Uruguay have also elected presidents with backgrounds in social activism in their most recent elections.

In Peru, elections this year will replace outgoing president Alejandro Toledo, who became the first South American president of indigenous descent when he was elected in 2000.

Morales' criticisms of the United States are widely admired among his supporters.

"This is our day," said Pablo Mercado, 48, a city worker in La Paz. "Finally we have something to celebrate."

THE WASHINGTON POST