Morales announced that one of the top priorities of his government was to eliminate racism against the country's indigenous population. To do this, he announced that all civil servants were required to learn one of Bolivia's three indigenous languages, Quechua, Aymara, or Guaraní, within two years. His government encouraged the development of indigenous cultural projects, and sought to encourage more indigenous people to attend university; by 2008, it was estimated that half of the students enrolled in Bolivia's 11 public universities were indigenous, while three indigenous-specific universities had been established, offering subsidized education. In 2009, a Vice Ministry for Decolonization was established, which proceeded to pass the 2010 Law against Racism and Discrimination banning the espousal of racist views in private or public institutions. Various commentators noted that there was a renewed sense of pride among the country's indigenous population following Morales's election. Conversely, the opposition accused Morales's administration of aggravating racial tensions between indigenous, white, and mestizo populations, and of using the Racism and Discrimination law to attack freedom of the press.
On International Workers' Day 2006, Morales issued a presidential decree undoing aspects of the informalization of labor which had been implemented by previous neoliberal governments; this was seen as a highly symbolic act for labor rights in Bolivia. In 2009 his government put forward suggested reforms to the 1939 labor laws, although lengthy discussions with trade unions hampered the reforms' progress. Morales's government increased the legal minimum wage by 50%, and reduced the pension age from 65 to 60, and then in 2010 reduced it again to 58.
Although unable to quell the autonomist violence, Morales' government refused to declare a state of emergency, believing that the autonomists were attempting to provoke them into doing so. Instead, they decided to compromise, entering into talks with the parliamentary opposition. As a result, 100 of the 411 elements of the Constitution were changed, with both sides compromising on certain issues. Nevertheless, the governors of the eastern provinces rejected the changes, believing it gave them insufficient autonomy, while various Indianist and leftist members of MAS felt that the amendments conceded too much to the political right. The constitution was put to a referendum in January 2009, in which it was approved by 61.4% of voters.
Following the approval of the new Constitution, the 2009 general election was called. The opposition sought to delay the election by demanding a new biometric registry system, hoping that it would give them time to form a united front against MAS. Many MAS activists reacted violently against the demands, and attempting to prevent this. Morales went on a five-day hunger strike in April 2009 to push the opposition to rescind their demands. He also agreed to allow for the introduction of a new voter registry, but said that it was rushed through so as not to delay the election. Morales and the MAS won with a landslide majority, polling 64.2%, while voter participation had reached an all-time high of 90%. His primary opponent, Reyes Villa, gained 27% of the vote. The MAS won a two-thirds majority in both the Chamber of Deputies and the Senate. Morales notably increased his support in the east of the country, with MAS gaining a majority in Tarija. In response to his victory, Morales proclaimed that he was "obligated to accelerate the pace of change and deepen socialism" in Bolivia, seeing his re-election as a mandate to further his reforms.
In December 2009, Morales attended the 2009 United Nations Climate Change Conference in Copenhagen, Denmark, where he blamed climate change on capitalism and called for a financial transactions tax to fund climate change mitigation. Ultimately deeming the conference to have been a failure, he oversaw the World's People Conference on Climate Change and the Rights of Mother Earth outside of Cochabamba in April 2010.