Domestic issues
In his inaugural address in December 1988, he outlined an ambitious and important goal of "modernizing" Mexico." He contended that "The modernization of Mexico is essential if we are to meet the demands of the 85 million Mexicans of today.... In brief, we need to modernize politics, the economy, and society. The modernization of Mexico is, moreover, an absolute imperative. This is the only way we will be able to affirm our sovereignty in a world undergoing profound transformation."
During his six-year term in office (sexenio) major changes were made to the Constitution of 1917 that affected political reform; church-state relations, ending many aspects of anticlericalism restricting the Catholic Church and other religious organizations; agrarian reform, ending redistribution of land under Article 27; and policy changes on "indigenous peoples, human rights, economic activities of the state, [and] criminal due process."
Immediately upon his inauguration, he arrested prominent union leaders, many of whom were his opponents in the PRI, among other measures to demonstrate his determination to set his own course. His government privatized state-run companies, including Teléfonos de México, sold to PRI-insider Carlos Slim, as well as re-privatizing banks that President José López Portillo had nationalized at the end of his term. The funds from these sales of state assets helped pay off Mexico's internal debt. However, there were also bailouts for banks and the Mexican toll roads that became scandals.
Salinas continued with the neoliberal economic policy of his predecessor Miguel de la Madrid and converted Mexico into a regulatory state. During his presidential term, he aggressively privatized hundreds of state-run companies, including telecommunications, steel, and mining. The banking system (that had been nationalized by José López Portillo) was privatized.
His National Development Plan (Plan Nacional de Desarrollo) published in 1989 had 4 objectives:
Protecting sovereignty
Democracy
Economic recovery
Improving the living standard.
By the end of his term, inflation had been reduced to 7% in 1994, the lowest figure in 22 years. Shortly after leaving office, due to the so-called December Mistake, inflation rose again to 51%.
During his term, the peso devalued from 2.65 MXP to 3.60 MXN per U.S. dollar by 30 November 1994, the last day of his term; thus the peso devalued far less than it had in the two previous terms. (The peso was later devalued from 4 per dollar to 7.2 in a single week due to the "December Mistake.")
Salinas established the National Solidarity Program (PRONASOL), a social welfare program, as a way to directly aid poor Mexicans, but also create a network of support for Salinas. It was his first official act as president. The program channeled public funds, which the administration said came largely from privatization of state-owned companies, into impoverished areas to improve roads, the electrical grid, schools, and clinics in order to raise levels of education and health and link remote areas, with lack of oversight in its spending. The program was similar to those in other countries to manage the disruption and political costs of macroeconomic adjustment. Salinas's Harvard doctoral dissertation had examined the relationship between social programs and political support for the government. Given the Salinas's questionable legitimacy as the winner of the 1988 election, PRONASOL was seen as a way for Salinas to deliver immediate benefits to the poor and avert their turning to other political parties or worse. It did not prioritize funding for Mexico's poorest states, but rather to states with middle-income populations where elections were most contested and where the PRI had lost. Politically, the program sought to undermine the appeal of leftists, especially Cuauhtémoc Cárdenas. In Chiapas, PRONASOL channeled increased funds in 1993 and 1994, but it did not prevent the Zapatista uprising, which showed that the program had only a limited impact.
The Catholic Church and the Mexican government has had a historically fraught relationship, with restrictions on the church's role in national life. In the 1980s, the church saw electoral participation reform and fighting electoral fraud as an issue. Sometime during the presidential campaign, the PRI had indicated to the Church that a Salinas victory would be beneficial to the Church. It has been considered a quid pro quo agreement.
A delegation of the leadership of the episcopal hierarchy attended the inauguration of Salinas on 1 December 1988. After the 1988 election the Mexican bishops did not make public statements about the election results. Behind the scenes the apostolic delegate to Mexico, the Vatican's representative, Mexican bishops, and government officials had a series of secret meetings that hammered out the outlines of a new Church-State relationship. In his inaugural address, Salinas de Gortari announced a program to "modernize" Mexico via structural transformation. "The modern state is a state which ... maintains transparency and updates its relation with political parties, entrepreneurial groups, and the church." His declaration was more an articulation of the direction of change, but not list of specifics.
The implementation of reforms entailed amending the 1917 constitution, but before that overcoming opposition on the Left but also in the Catholic Church itself. After considerable debate, the Mexican legislature voted for fundamental revisions in Church-State policy.
In the wake of the highly controversial 1988 election results, the government initiated a series of electoral reforms. A major change was the creation of the Federal Electoral Institute (IFE) in October 1990, taking elections out of the hands of the Ministry of the Interior to create an independent entity.
The 1994 elections were the first to have international observers, and were considered, at that time, the fairest elections in the century, although not free of controversy. For the first time, the PRI lost its two-thirds majority in Congress, which is necessary to conduct constitutional reforms.
In 1990, the National Human Rights Commission (Comisión Nacional de los Derechos Humanos) was created. Initially a government agency, it became a separate entity,
In 1992, Salinas and his Secretary of Education, Ernesto Zedillo introduced new compulsory history texts in Mexican schools, part of the Mexican Free-Textbook Program. Authored by Enrique Florescano and Héctor Aguilar Camín, the new textbooks set off a storm of controversy. Shifts in emphasis concerned the Porfiriato and the role of foreign investment, Emiliano Zapata, lauding him as a hero despite his having opposed every government in power; U.S.-Mexico relations, avoiding negative treatment of the history; and the Catholic Church in Mexico, treating it dispassionately. The government was compelled to withdraw them in January 1993. According to one assessment, "While the 1992 textbook controversy disclosed new support for the regime from the right, it also revealed an erosion of support and discipline within officialdom."