In the early 2000s there were high levels of political instability across the country, including five presidents in four years. Much of the instability dates back to the economic reforms otherwise known as "
shock therapy" implemented by President
Gonzalo Sánchez de Lozada whereby many formerly public utilities were
privatized. These reforms ultimately led to the
First Bolivian Gas War in October 2003 where protesters, many of them of indigenous descent, essentially forced the resignation of Sánchez de Lozada.
Vice President Carlos Mesa took office as president. In his year in office, Mesa held a national
referendum on the prospect of the nationalization of the
hydrocarbons industry which he claimed to have won. Critics however said that the questions were vague and ambiguous with regard to outright nationalization of the hydrocarbons industry. In May 2005 the
Second Bolivian Gas War began after Congress agreed to raise taxes on foreign companies from 18% to 32%. The unions, led by
Evo Morales, felt the law did not go far enough and effectively shut down the country, blockading major roads and cutting off the food supplies of several large cities. In June 2005 the protests ultimately led to Mesa's resignation. Supreme Court Chief Justice
Eduardo Rodríguez assumed the position of interim President of the Republic after the presidents of both the Senate and Chamber of Deputies declined the position and Rodríguez was fourth in line of succession. Viewed as an apolitical figure, Rodríguez was welcomed by protesters and called for the presidential elections slated to take place in 2007 to be brought forward to December 2005. ==Electoral system==