Bolivia’s President Carlos Mesa stepped down on Monday, after an estimated 80,000 people surrounded the presidential palace and the nearby congress on the main square in La Paz. Mesa’s resignation comes after only 20 months in office. His predecessor, Gonzalo Sanchez de Lozada was also driven from office, likewise by demonstrations over control of Bolivia’s gas reserves.

Former President Mesa’s move came after almost three weeks of violent protests that partially paralysed the Bolivian nation, and eroded the remains of his limited credibility among the general public.

The demonstrators, including trade unions, indigenous people, peasants and workers, are calling for the nationalisation of the Bolivian gas industry, which taps into the continent’s second-largest gas reserves. They have also demanded constitutional reform to give more power to the indigenous Aymara and Quechua people, who live mainly in impoverished Andean regions and make up around 60 percent of Bolivia’s 8.3 million people.

The protests have blocked at least 55 key roads, as well as traffic from neighbouring Chile and Peru. Bolivia’s oil exports to Chile were also cut on Monday by a takeover of an oil pipeline pumping station.

Australians Adam Gregor, 23, from Mt Eliza on Victoria’s Mornington Peninsula, and his girlfriend Simone Reuss, 24, from Wodonga in northern Victoria, have also been impacted, finding themselves stuck in the paralysed city, unable to return to their homes.

Faced with stalemate, the former President had turned to the Catholic Church to mediate between politicians and social leaders.

Concerned about the “worrisome” situation in Bolivia, Pope Benedict XVI said, “While I invite you to pray for this dear people, I entrust to the Madonna my hope…that the willingness to have an open and faithful dialogue prevails.”

Some information in this report was provided by AAP.