The referendum vote on sweeping reforms to the constitution would have allowed Hugo Chávez to run for reelection indefinitely, control Venezuela's foreign currency reserves, appoint loyalists over regional elected officials and censor the media if he declares an emergency.

Chávez called the vote a "photo finish," but did concede defeat. He vowed to "continue in the battle to build socialism" and though the reforms had failed "for now," they were "still alive." The vote marks the first setback at the ballot box for Chávez, since he came to power in 1998.

Raul Baduel, a former defense minister in Venezuela, now an emerging critic of the leader, said Chávez had manipulated the public's feelings in an effort to pass the reforms, which would also have limited citizens' rights were a state of emergency to be declared.

Sources:

Brian Wagner "Venezuela Rejects Constitutional Changes". Egenas, December 3, 2007
Saul Hudson "Venezuelans reject Chavez's bid for new powers". Reuters, December 3, 2007
"Chavez defeated over reform vote". BBC News Online, December 3, 2007