The Porfiriato: Mexico Under Diaz

The Porfiriato

• Porfirio Diaz ruled Mexico for a significant period (a third of a century), during a time of great change in the westen world.
• The period was marked by innovation in technology, politics, economics, and art.
• Diaz's Mexico was notable even in a world of profound change.

Mexico in 1876

• Mexico was largely untouched by the industrial revolution in 1876, except in major cities.
• Western Europe and the United States underwent transformations in the 50 years leading up to then.
• Mexico experienced political instability and economic losses.
• Diaz inherited an empty treasury, outstanding debts, and underpaid government employees.
• Mexico's international credit rating was poor.
• Imports exceeded exports, creating a balance of payments issue, inhibiting foreign investment.
• Affluent Mexicans were hesitant to invest due to political instability.

Order and Progress Under Diaz

• Diaz aimed to change Mexico's image and establish stability to attract investors.
• Diaz's main goal was to create order and progress in Mexico.
• He sought to create stability in order for foreign investors to invest in Mexico, to promote manufacturing, mining, and agriculture.
• Diaz established the rule of law to ensure stability.
• He had a background in law and the army.
• Diaz sought to remove the stigma associated with previous Mexican politics.
• Diaz reduced his own salary and the salaries of other government employees.
• Diaz tackled smuggling to improve import and export duties
• Diaz opened new consulates along the Texan border to promote legal trade with the United States.

The Gonzalez Presidency

• The González presidency was controversial.
• Revenues rose but expenses increased.
• Railroad improvements were made, but costs were high.
• Government debt increased.
• Accusations of corruption and mismanagement emerged in the press.

Foundations of Modernization

• Renewed focus on political stability and economic development.
• Modern technology (steam, electric power) replaced traditional methods.
• New infrastructure (telephone, telegraphs) were implemented.
• Public health improved with sanitation initiatives and fighting yellow fever.
• Modern drainage systems were introduced.
• Improvement in the country's infrastructure and modernization efforts
• Major improvements in cities and towns.
• Development of transportation (railroads)
• Building of new public works like theaters, libraries, ports, hospitals, and prisons.
• Significant improvement in public administration and public services.
• Mexico's image improved on the world stage..

The Revival of Mining

• Diaz's government introduced new mining codes and updated mining tax laws.
• A new code was introduced to appeal to foreign investors.
• Foreign investment (especially from the US and Europe) increased due to updated mining codes and tax laws
• Large mining developments were initiated.
• New mining techniques and machinery led to a surge in production.
• Foreign investors owned and controlled many mines, such as those in northern Mexico.

Oil Fields and Other Industrial Enterprises

• Increased competition between American and British investors in Mexico's oil industry.
• Major drilling efforts commenced in Mexico.
• Significant capital investment by foreign interests.
• Development of industrial enterprises (steel, beer, textiles).
• Growth of industrial production in Mexico, specifically in Monterrey.
• Vast improvement in ports to allow for international trade.
• Significant increase in trade in Mexico from 1876 to 1910.