With
President Porfirio Diaz committed in financial reforms while attracting foreign
investment, development in Mexico’s infrastructure and industries began.
However, its development went unfelt by majority of Mexicans.
Viaduct of Metlac |
Infrastructure
Development
The
influx of foreign investment led to improvements in Mexico’s infrastructure.
Mostly from American investments, Mexico saw the spread of railroad networks
and telegraph lines. Communication and postal services expanded in staggering rate.
Mines and oil fields altered the countryside.
Railroad
development had been the signal of industrialization and Mexico committed in
its growth. In 1876, Mexico only had 1,000 kilometers of railroad tracks with
lines between the capital Mexico City, Veracruz and Querataro. Under Presidents
Diaz and Gonzales, railroad network expanded by 11,000 km. Much of the funding
for this undertaking, about 2/3, came from American investors that amounted to
$ 300 million. Nonetheless, in fear of a railroad monopoly and its influence led
the Mexican government to highly involve in the industry owning much of the
strategic lines that crossed the country. Many of the railroad tracks connected
mines and port cities.
Here are Old Mexico and New Mexico face to face by Percy Cox |
On
the matter of ports, Diaz’s government also improved the ports of Tampico,
Veracruz, Coatzalcoalcos, Manzanillo, and Salina Cruz. The dredging to deepen
ports and improvements in its loading and unloading capacities cost around $
120 million. This developments
contributed to Mexico in meeting the needs of its growing global trade.
Alongside
ports and railroad development, telegraph line networks also expanded. From the
initial length of 7,135 km of line in 1876, it grew to 50,324 by 1903.
Postal
service as well saw improvements, with the Rurales containing banditry that
disrupted its service. Post offices worked more efficiently and its numbers
rose from a mere hundred offices to around 2,200 by the end of the Porfiriato.
Industrial
Development
Industrial
development had been viewed by President Diaz as a means of increasing the
country’s income. Its industrial development focused in the primary industry
with a modest manufacturing industries growing.
Mining
had been a major element of the Mexican economy even during the days of Spanish
colonialism. During Diaz’s rule, mines only number around 8,970 in 1888, but
with foreign investment encouraged by government support, it rose to 23,191.
About 5,561 of this mines had been for silver, which composed the bulk of
exports. Iron mining had been also practiced in modesty with the biggest
located in Cerro del Mercado. Companies also mined coal in Sabinas and Coahuila
with a production of 300 million tons of low grade coal.
Edward L. Doheny |
Oil
fields also began to appear in Mexico in 1901. Californian prospector Edward
Doheny struck oil in his 600,000 acre of Mexican land and sold rights to
Standard Oil. Soon oil fields scattered in the lands of Tampico and Tuxpan.
Small
manufacturing had also been reported in Mexico during Diaz’s regime. Its
facilities focussed for the production of sugar, tobacco, and textile. In the
textile industry cotton, broadcloths, and cashmeres composed much of its
production. Steel and iron plants also existed numbering at 7 with the largest
in Monterey. 90 smelters had also been operating and processing metals produced
by nearby mines.
Industrial
development had been growing with the support of the government. Local markets
expanded as President Diaz abolished internal customs called alcabalas. Foreign investors provided
technical skills while Diaz’s regime gave tax breaks and customs free import of
machineries and raw material. Manufacturing grew also at the back of cheap
labor that Mexicans provided as a result of difficulties in the agricultural
sector.
Agriculture and Land
Reform
Among
the downside of President Diaz’s regime included its indifference to the peasantry.
His regime allowed survey companies to take lands that they surveyed and had no
legal owners in form of titles. Most farmers in the country farmed lands that
had no title, thus many suffered from land grabbing by the survey company. Many
land grab victims either faced the prospects of becoming debt peons or workers
in sweatshop factories in the cities.
In
addition, Diaz’s government also abolished the ejido or communal lands to
incentivize farming. This, however, led to poor farmers incapable of managing
huge tracts of lands.
Under
Diaz’s rule, owners of haciendas gain dominance over rural society. The
government relied on them for political and material support in exchange for
freedom in conducting their affairs, thus conditions for indebted farmers and workers
worsen.
Nature of Development
Diaz’s
government improvements towards the economy had a liberal nature. He welcomed
foreign investment and promoted trade. However, when it comes to local
manufacturing he showed his government’s support by providing tariff
protections.
For
social welfare, the new found wealth led to increase in number of schools.
Education became a priority for the government. Also, Diaz supported the
establishment of numerous orphanages and shelters for the homeless as well as
asylums.
Few
developments in social welfare and education, nonetheless, went overshadowed by
the economic inequality resulting from the economic development. In
agriculture, only 2% of the population had land titles and 10% of Indian
communities held lands. Much of those who owned lands belonged to the hacienda
owning class. Peonage and debt rose among the peasants.
The
plight of the Indian peasants went unnoticed as a result of the racism of the
Cientificos around Diaz. They perceived Indians as inferior and lazy as well as
a hindrance to the progress of the country. With this view, the Indian
population shoved into marginalization.
"Here you have an ordinary scene at a Mexian railway station" in Pearson Magazine |
For
Mexican workers, their plight never fared better than poor Mexican farmers.
They toiled in factories under atrocious conditions and at long hours. Safety
never became a priority for factories. For all their suffering, they received
little. Any voice for change went into deaf ears as factory owners had the
option of firing local workers knowing countless unemployed waiting for job
openings.
Accordingly,
the Mexican economic miracle under Diaz only benefited the few rich hacienderos
and factory owners. Moreover, foreign business and investors also flourished
under Diaz. Foreign influence rose as with reliance to them. The government
allowed the entry of foreign business and permitted them to remit their profits
back to their country rather than giving back to their Mexican workers.
Foreigners also enjoyed protection from Mexican laws. Unofficially, foreigner
in Mexico had extraterritoriality that made them virtually untouchable. Thus,
foreigners abused Mexicans with impunity.
In
politics, President Diaz used government funds to pay the army and the rurales
well. In turn they cracked down on the President’s opponents and quelled
peasant uprisings and worker strikes. President Diaz tightened his grip to
power removing limits in terms. His brutal authoritarian regime endured as he
brought to his side wealthy capitalist, foreigners, and hacienderos.
End of the Porfiriato
The
Porfiriato saw its descent after an economic depression hit Mexico in 1907.
Commodity prices stumbled and the economy began to overheat causing inflation
to spike. Moreover, cost of living overwhelmingly outpaced wages. Thus,
economic difficulty caused many to question Diaz’s regime.
In
1908, Diaz had an interview with James Creelman of Pearson’s Magazine and he
announced his retirement and his thoughts that Mexico was finally ready for
democracy. The statements made for the interview meant only to show a good
picture of his government abroad, but the interview was translated and spread
throughout Mexico. People then looked forward to Mexico’s return to democracy
that finally sparked in 1910 the Mexican Revolution that toppled Porfirio
Diaz’s government.
See also:
Bibliography:
Websites:
“Diaz and the Porfiriato 1876-1910.” In MexicanHistory.org. Accessed on April 29, 2018. URL: http://mexicanhistory.org/Diaz.htm
Evens, Travis. “The Porfiriato: The Stability and Growth Mexico Needed.” In Studies by Undergraduate Researchers at Guelph. Accessed on April 29, 2018. URL: https://journal.lib.uoguelph.ca/index.php/surg/index
Books:
Mallen, Bernardo. Mexico Yesterday and To-day, 1876-1904. N.P., N.P.: N.P., 1904.
Creelman, James. Diaz, Master of Mexico. New York, New York: D. Appleton and Company, 1911.
Kirkwood, Burton. The History of Mexico. Westport, Connecticut: Greenwood Press, 2000.
Tweedie, Alex. Porfirio Diaz, Seven Times President of Mexico. London: Hurst and Blackett Limited, 1906.
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