Change in structure and ideology The party's name was changed in 1946, the final year of
Manuel Ávila Camacho's term of office. The sectoral representation in the party continued for the workers, peasants, and the popular sector, but the military was no longer represented by its own sector. The Mexican president was at the apex of the political system with the PRI. To reach the top of the government, as the candidate and then president of the republic, the path was only through membership and leadership in the party and government service. Within the party, there were factions, the
técnicos, bureaucrats with specialized knowledge and training, especially with the economy, and
políticos, the seasoned politicians, many of whom had regional roots in state politics.
Miguel Alemán was the PRI's candidate in the 1946 elections, but he did not run unopposed. Alemán and his circle had hoped to abandon sectoral representation in the party and separate the party as an organism of the state, but there was considerable pushback from the labor sector and the CTM, which would have lost influence, along with the other sectors. The structure of the party remained sectoral, but the Alemanistas abandoned the goal that had been "the preparation of the people for the implementation of a workers' democracy and for the arrival of a socialist regime." The party slogan was changed from the PRM's "[f]or a workers' democracy" (
Por una democracia de trabajadores) to the PRI's "[d]emocracy and justice" (
Democracia y justicia). In practice after Cárdenas left office, the party became more centrist, and his more radical agrarian policies were abandoned. With Lombardo Toledano's replacement as leader of the CTM, labor under the CTM's
Fidel Velázquez became even more closely identified with the party. The more radical left of the labor movement, under Vicente Lombardo Toledano, split from the PRI, the Partido Popular. Although the party gave voice to workers' demands, since it was outside the umbrella of the PRI and lost power and influence. The leadership of component unions became advocates of PRI policy at the expense of the rank and file in exchange for political backing from the party and financial benefits. These
charro ("cowboy") unions turned out the labor vote at election time, a guaranteed base of support for the party. During prosperous years, CTM could argue for benefits of the rank-and-file, such as higher wages, networking to provide jobs for union loyalists, and job security. The principle of no-reelection did not apply to the CTM, so that the party loyalist Velázquez provided decades of continuity even as the presidency changed every six years. The PRI won every presidential election from 1929 to 1982, by well over 70 percent of the votemargins that were usually obtained by massive electoral frauds. Toward the end of his term, the incumbent president, in consultation with party leaders, selected the PRI's candidate in the next election in a procedure known as "the tap of the finger" (), which was integral in the continued success of the PRI towards the end of the 20th century. In essence, given the PRI's overwhelming dominance, and its control of the electoral apparatus, the president chose his successor. The PRI's dominance was near-absolute at all other levels as well. It held an overwhelming majority in the
Chamber of Deputies, as well as every seat in the
Senate and every state governorship. The political stability and economic prosperity in the late 1940s and the 1950s benefited the party, so that in general Mexicans did not object to the lack of real democracy.
Mexican Miracle was the first civilian president following the Mexican Revolution and son of a revolutionary general. Starting with the Alemán administration (1946–1952) until 1970, Mexico embarked on a sustained period of economic growth, dubbed the
Mexican Miracle, fueled by
import substitution and low
inflation. From 1940 to 1970 GDP increased sixfold while the population only doubled, and
peso-
dollar parity was maintained at a stable exchange rate.
Economic nationalist and
protectionist policies implemented in the 1930s effectively closed off Mexico to foreign trade and speculation, so that the economy was fueled primarily by state investment and businesses were heavily reliant on government contracts. As a result of these policies, Mexico's capitalist impulses were channeled into massive industrial development and
social welfare programs, which helped to urbanize the mostly-agrarian country, funded generous welfare subsidies for the working class, and fueled considerable advances in communication and transportation infrastructure. This period of commercial growth created a significant urban
middle class of
white-collar bureaucrats and office workers, and allowed high-ranking PRI officials to steal (
graft) large personal fortunes through their control over state-funded programs. State monopoly over key industries like electricity and telecommunication allowed a small clique of businessmen to dominate their sectors of the economy by supplying government-owned companies with goods and commodities. A major impact of Mexico's economic growth was urban population growth, transforming the country from a largely rural one to urban. The middle class grew substantially. The overall population of Mexico grew substantially with a greater proportion being under the age of 16. These factors combined to decrease the pull of the past. The policies promoting industrial growth helped fuel the growth of Mexico's north as a center of economic dynamism, with the city of Monterrey becoming Mexico's second-largest. The general economic prosperity served to legitimize PRI hegemony in the eyes of most Mexicans, and for decades the party faced no real opposition on any level of government. On the rare occasions when an opposition candidate, usually from the
conservative National Action Party, whose strength was in Mexico's north, garnered a majority of votes in an election, the PRI often used its control of local government to rig election results in its favor. Voter apathy was characteristic in this period, with low turnout in elections. The PRI co-opted criticism by incorporating sectors of society into its hierarchy. PRI-controlled
labor unions ("
charro unions") maintained a tight grip over the
working classes; the PRI held rural farmers in check through its control of the
ejidos (state-owned plots of land that peasants could farm but not own), and generous financial support of universities and the arts ensured that most
intellectuals rarely challenged the ideals of the Mexican Revolution. In this way, PRI rule was supported by a broad national consensus that held firm for decades, even as polarizing forces gradually worked to divide the nation in preparation for the crises of the 1970s and 1980s. The consensus specifically held that Mexico would be capitalist in its economic model; that the masses of workers and peasants would be kept in checkas separate units and not allowed to merge into a single sector that would have too much strength; that the state and the party would be the agent for this control; and that the state and private entrepreneurs would compete in the mixed economy. So long as there was general prosperity, the system was stable economically and politically. Political balance meant that sectors had a voice within the party, but the party and the state were the arbiters of the system. Those supporting the system received material rewards that the state distributed. In this period, there was a continuing rapprochement with the United States, which built on their alliance in World War II. Although there was rhetoric about economic nationalism and defense of Mexican sovereignty, there was broad-based cooperation between the two countries. Cracks appeared in the system. There was significant labor unrest with strikes by railway workers, electricians, and even medical doctors that were brutally suppressed. Culturally the mood was changing as well, with
Carlos Fuentes publishing
The Death of Artemio Cruz (
La Muerte de Artemio Cruz) in 1962, metaphorically the death of the ideals of the Mexican Revolution. The fictional Cruz had been a revolutionary soldier, corrupt politician, and businessman, now on his deathbed. Considered a landmark in Latin American literature, it highlighted aspects of Mexican history and its political system.
Attempts at party reform , a
reformist PRI politician When Alemán became president in 1946, the PRI had begun experiments in internal primaries, but Alemán cracked down on this democratic opening and had congress pass a law against parties holding primaries. Revolutionary general
Rodolfo Sánchez Taboada, president of the party, had been in favor of primaries, but Alemán's viewpoint prevailed and PRI candidates were chosen in closed party assemblies. Sánchez was replaced as titular head of the party, and the president of the republic remained firmly in control. During the early presidency of Gustavo Díaz Ordaz,
Carlos A. Madrazo was appointed president of the party and undertook serious reforms in 1964–65. PRI legislators were attempting to negate the principle of no-reelection for members of congress, which many of supported. Madrazo went further in reform attempts, seeking to democratize the electoral process for municipal candidates, which sectoral leaders and local PRI bossed opposed because it would undermine their hold on local elections. It was implemented in just seven states. Madrazo was forced to resign. Madrazo died in
an airplane crash in 1969, which at the time was considered suspicious. Only in 2000 did the PRI choose its presidential candidate through a primary, but its candidate
Francisco Labastida lost that election.
Political impact of the 1968 Tlatelolco massacre The improvement of the economy had a disparate impact in different social sectors and discontent started growing within the middle class as well as the popular classes. The doctors' strike in 1965 was a manifestation of middle-class discontent. Seeking better wages and workplace conditions, doctors demanded redress from the government. Rather than give into such demands, President Díaz Ordaz sent in riot troops to suppress the strike with brute force and arrest leaders. Two hundred doctors were fired. Díaz Ordaz's hard line on this strike by a sector of the middle class presaged even harsher suppression during the summer of 1968. With the choice of capital for the venue for the
1968 Mexico City Olympic Games slated for October, the government poured huge resources into preparing facilities. Mexico wanted to showcase its economic achievements and sought the international focus on the country. Maintaining an image of a prosperous and well-ordered Mexico was important for the Mexican government. In a relatively low-level conflict in late July 1968 between young people in Mexico City, the
Granadero riot police used violence to tamp down the incident. However, the crackdown had the opposite effect, with students at the
National University (UNAM) and the
National Polytechnic Institute (IPN) putting aside their traditional rivalries and joining together in protest in the
Mexican Student Movement. They protested lack of democracy and social justice in Mexico. Middle-class university students had largely been apolitical up until this point. President
Gustavo Díaz Ordaz (1964–1970) ordered the army to occupy the university to suppress the mobilization and minimize the disruption of the Olympic Games. Orderly large-scale protests in downtown Mexico City showed the discontent of students and their largely middle-class supporters. As the opening ceremonies of the Olympics approached, the government sought help from the United States in dealing with the protests. Unaccustomed to this type of protest, the Mexican government made an unusual move by asking the United States for assistance, through
LITEMPO, a spy-program to inform the
Central Intelligence Agency (CIA) of the US to obtain information from Mexico. The CIA responded by sending military radios, weapons and ammunition. The LITEMPO had previously provided the Díaz Ordaz government with 1,000 rounds of
.223 Remington ammunition in 1963. After weeks of huge and largely peaceful demonstrations in Mexico City in August and September by students and middle-class Mexicans, the government cracked down on 2 October, with army and special tactical units opening fire on a relatively small demonstration in Tlatelolco, a section of the metropolis. The aggressive
military response led to 300-400 dead, over 1,000 wounded, and more than 1,000 arrested protestors, although precise numbers are in dispute. Despite that the Olympics went forward on schedule, with the president of the Olympic Committee declaring that the protests were against the Mexican government and not the Olympics themselves, so the games proceeded. Political life in Mexico was changed that day. 2 October 1968, the date of what is known as the Tlatelolco massacre, is a turning point in Mexican history. That date "marks a psychological departure in which Mexicans – particularly urban, well-educated citizens, intellectuals, and even government officials themselves – began to question the efficiency and morality of an authoritarian state that required violence against middle-class students to maintain its position of authority and legitimacy to govern." Intellectuals were alienated from the regime, after decades of cooperation with the government and receiving benefits for that service. The poet and essayist
Octavio Paz, who would later win the Nobel Prize in Literature, resigned as Mexican Ambassador to India. Novelist
Carlos Fuentes denounced the repression. Díaz Ordaz chose
Luis Echeverría as the PRI candidate in the 1970 election. As the Minister of the Interior, Echeverría was operationally responsible for the Tlatelolco massacre.
Economic crisis of the 1970s By the early 1970s, fundamental issues were emerging in the industrial and agricultural sectors of Mexico's economy. Regional underdevelopment, technological shortages, lack of foreign competition, and uneven distribution of wealth led to chronic underproduction of
investment and
capital goods, putting the long-term future of Mexican industry in doubt. Meanwhile, ubiquitous poverty combined with a dearth of agricultural investment and infrastructure caused continuous migration from rural to urban areas; in 1971, Mexican agriculture was in such a state that the country had become a net importer of food. Overvaluation of the peso led to a decline in the
tourism industry (which had previously compensated for failures in industry and agriculture) meant that by the early 1970s, the economy had begun to falter, and they believed the only sure source of capital was external borrowing. Díaz Ordaz chose his
government secretary,
Luis Echeverría, to succeed him as president. Echeverría's administration (1970–76) increased social spending, through external debt, at a time when oil production and prices were surging. However, the growth of the economy came accompanied by inflation and then by a plummeting of oil prices and increases in interest rates. Investment started fleeing the country and the peso became overvalued, to prevent a devaluation and further fleeing of investments, the
Bank of Mexico borrowed 360 million dollars from the
Federal Reserve with the promise of stabilizing the economy. External debt reached the level of $25 billion. Unable to contain the fleeing of dollars, Echeverría allowed the peso to float for the first time on 31 August 1976, then again later and the peso lost half of its value. Social programs were also created through the Alliance for Production, Global Development Plan, el COPLAMAR, Mexican Nourishing System, to attain independence on food, to reform public administration. López Portillo also created the secretaries of Programming and Budgeting, Agriculture and Water Resources, Industrial Support, Fisheries and Human Settlements and Public Works. Mexico then obtained high economic growth, a recuperation of salaries and an increase in spending on education and infrastructure. This way, social and regional inequalities started to diminish. López Portillo refused to devalue the currency saying "The president who devalues, devalues himself."
First of the technocratic presidents, 1982 in 1982 When López Portillo left office in December 1982, the economy was in shambles. He designated
Miguel de la Madrid as the PRI candidate, the first of a series of economists to rule the country, a
technocrat who turned his back on populist policies to implement
neoliberal reforms, causing the number of state-owned industries to decline from 1155 to a mere 412. After the 1982 default, crisis lenders were unwilling to loan Mexico and this resulted in currency devaluations to finance spending.
An earthquake in September 1985, in which his administration was criticised for its slow and clumsy reaction, added more woe to the problems. As a result of the crisis, black markets supplied by goods stolen from the public sector appeared. Galloping inflation continued to plague the country, hitting a record high in 1987 at 159%. ==Transition to multi-party system: 1988–2000==