At the beginning of 2007，president Correa inaugurated his presidency by mobilizing a drastic reform. A new constitution was elaborated through 3 referendums and a state system featuring separation of four powers took shape as a Council of Citizen Participation and Social Control was added to the legislative，judicial and executive bodies to reinforce the president’s power and the state’s control over oil resources. In 2008，Ecuador’s economy turned for the better by growing at 6.5%. Income distribution gap remained and the population stricken by poverty was still large，a reason of the rampant social contradictions. During the past year，Ecuador stepped up strengthening cooperation with governments of Venezuela and Bolivia while its diplomatic ties with Colombia was left to be recovered although the military conflicts along the boarder with Colombia were resolved peacefully. Meanwhile，as a reflection of its acute contradictions with the US，Correa opposed signing an FTA with the US and claimed withdrawal of US troops from the Manta military base.