civilian government. The Bangladesh military cited food shortages, corruption and economic mismanagement as reasons behind the coup. Second martial law and Ershad administration Sattar was replaced by the chief justice A. F. M. Ahsanuddin Chowdhury. Lieutenant General Hussain Muhammad Ershad proclaimed martial law and became the Chief Martial Law Administrator. He appointed himself as the President of the Council of Ministers and the naval and air force chiefs as deputy martial law administrators. Ershad geared Bangladesh's foreign policy more towards the anti-Soviet bloc. In 1983, Ershad assumed the presidency. Political repression was rife under Ershad's martial law regime. However, the government implemented a series of administrative reforms, particularly in terms of devolution. The eighteen districts of the country were divided into sixty-four districts. The upazila system was also created. Among his major actions were to privatise the largely state-owned economy (up to 70% of industry was in public ownership) and encourage private investment in heavy industries along with light manufacturing, raw materials, and newspapers. Foreign companies were invited to invest in Bangladeshi industry as well, and stiff protectionist measures were put in place to safeguard manufacturing. All political parties and trade unions were banned for the time being, with the death penalty to be administered for corruption and political agitation. Ershad's takeover was generally viewed as a positive development, as Bangladesh was in a state of serious economic difficulty. The country was facing significant food shortages. The government also faced a severe budget deficit to the tune of 4 billion takas, and the IMF declared that it would not provide any more loans until Bangladesh paid down some of its existing debts. During most of 1984, Ershad sought the opposition parties' participation in local elections under martial law. The opposition's refusal to participate, however, forced Ershad to abandon these plans. Ershad sought public support for his regime in a national referendum on his leadership in March 1985. He won overwhelmingly, although turnout was small. Two months later, Ershad held elections for local council chairmen. Pro-government candidates won a majority of the posts, setting in motion the President's ambitious decentralisation programme. Political life was further liberalised in early 1986, and additional political rights, including the right to hold large public rallies, were restored. At the same time, the Jatiya (National) Party, designed as Ershad's political vehicle for the transition from martial law, was established. Despite a boycott by the BNP, led