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Mexico - Cardenismo and the Revolution Rekindled
Cárdenas also reorganized the official Mexican party, the PNR, to broaden its political base. The party was renamed the Party of the Mexican Revolution (Partido de la Revolución Mexicana--PRM), and membership expanded to include representatives of four corporately defined "sectors" of Mexican society: labor, agrarian, military, and popular. The agrarian sector consisted of peasants and rural laborers, and the popular sector included the small but growing middle class, civil servants, and small-scale merchants.
Cárdenas's boldest act was his expropriation in March 1938 of all foreign oil operations on Mexican territory. In response to a strike by oil workers seeking higher wages, the government intervened on their behalf, demanding that the mostly United States-owned companies share more of their technical and managerial expertise with Mexican nationals. When the companies failed to comply with the worker-training demand, Cárdenas issued his sweeping expropriation of all foreign oil operations. Compensation was based on the underreported "book" value of the properties. The expropriation, which Cárdenas considered a natural outcome of the constitutional claim to national ownership of all subsoil resources, temporarily disrupted commerce between Mexico and the United States. Nationalization, however, won Cárdenas widespread praise both within Mexico and throughout Latin America, where nationalist sentiment against foreign commercial interests ran high.
Land reform was one of Cárdenas's major accomplishments. In the course of six years, he distributed almost 18 million hectares--more than twice as much land as all of his predecessors combined--to two-thirds of the Mexican peasantry through the system of communal farms or ejidos (see Land Tenure, ch. 3). Even though agriculture suffered an initial setback because of the loss of economies of scale and a lack of resources and credit, the redistribution proved tremendously popular with the majority of the Mexican people and earned Cárdenas a special place in Mexican history.
In November 1941, on the eve of United States entry into World War II, Mexico and the United States finally settled their differences over the expropriated properties. Although it was a significant political victory for Cárdenas, the oil expropriation cost Mexico dearly in terms of capital flight and foreign investment. For nearly twenty years, the new national petroleum company, Mexican Petroleum (Petróleos Mexicanos--Pemex) suffered from inadequate technical expertise and outdated equipment.
Cardenismo and the revolution rekindled
Cárdenas immediately showed his independence by becoming the first Mexican president to campaign for office. Once in office, he began his sexenio by adopting several popular measures. He reduced his presidential salary and decided not to move into the national palace, he ordered a resumption of land reform on an unprecedented scale, and he expressed tacit support for a wave of urban strikes. Calles followed these developments with unease, and soon sought to undermine the new president's authority. A definitive break occurred between Calles and Cárdenas when the new president fired many of Calles's followers in the federal bureaucracy and closed down a network of gambling houses owned by Calles's associates. It became apparent that Calles had underestimated Cárdenas's commitment to reform and his political skills. Calles's open opposition to Cárdenas finally earned the former leader forced exile to the United States in 1936. Conservatives from San Luis Potosí staged a rebellion in protest, but the military remained loyal to the president and brought the revolt under control.
By the end of his term in 1940, Cárdenas had dramatically transformed the Mexican political system. Continuing the legacy of executive predominance begun by Calles, Cárdenas further augmented presidential power by subordinating the entire apparatus of the official party under the chief executive. In addition, Cárdenas expanded the role of the state in Mexican society, establishing patron-client relationships among various state agencies and the corporately defined interest groups. The "institutionalization" of the Revolution resulted in a situation in which the state became the sole mediator among competing interest groups and the final arbiter of political disputes.
Church relations also improved during Cárdenas's presidency. Key was the intervention of Luis María Martínez, archbishop of Mexico. Martínez encouraged Roman Catholics to be more sensitive to the social and economic welfare of society, even though national education continued to be secular and had become socialist in its emphasis. The labor movement also received Cárdenas's attention. The president supported Vicente Lombardo Toledano, a Marxist who reorganized labor into the Confederation of Mexican Workers (Confederación de Trabajadores Mexicanos--CTM). The old CROM had become corrupt through the years, and the CTM became the new, quasi-official representative of Mexican workers, developing programs and pushing for improvement of working conditions and minimum wage schedules (see Organized Labor, ch. 4).
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