After two weeks, here's the next update!
The Diaz Plan
Contrary to the myth of Diaz walking to Congress with the fateful document, the Diaz Plan was actually a series of reforms passed during 1891.
These reforms can be roughly categorized in three types. The first, and most radical, were the tax reforms affecting previously untouchable groups: the many foreign companies in Mexico and specially the
haciendados.
In order to promote foreign investment in Mexico Diaz had used tax waivers and other incentives, the industrialization they would bring to the country payment enough [1]. The new reforms took some of those privileges away, just enough for Mexico to start filling its coffers.
More dangerous were the
haciendados. Essentially fiefs within Mexico, the relationship with the government was a 'live and let live”. The new reforms affected the
status quo, requiring them to pay taxes higher as well as other things. Messing with either group would have been a death sentence, sure to cause a revolution, but Diaz gambled that in the current climate it would work.
As history shows, he was completely correct. The European nations, hoping to beat the United States in influence in Mexico, readily accepted the new taxes, while the
haciendados also agreed out of either true patriotism or fear of being though of as traitors by a population still drunk on patriotism.
Thus, Mexico's coffers began filling with money, which would be useful on the years ahead.
The next reforms were on the Mexican Armed Forces. General Bernardo Reyes, hero of the Baja California War, was appointed Secretary of War and Navy [2]. He quickly began drafting plans to increase the Army to 50,000 men, along with establishing Military and Reserve schools.
Additionally, the fearsome
Rurales force was to be massively expanded as a police force to truly pacify the country, and plans were made to use volunteers rather than forcefully conscripting bandits [3].
Finally there were the Navy reforms. Considered the least important branch of the armed forces, it received the least amount of attention. Nonetheless enough resources were set aside to make sure it was modernized. A few naval schools were established, and a couple of cruisers were purchased.
In order to accommodate the vastly increased armed forces, a series of industry reforms were passed. Road improvements were planned, and the railroad lines were increased, with a particular focus on a line connecting Baja California to the rest of the country [4].
In addition, buildings housing the new military, reserve and naval schools were scheduled. Finally, plans were made to start building factories in the future, in order to reduce Mexico's reliance on imports for weapons, equipment, and the like.
[1] It all began with a 70-year tax waiver to France.
[2] OTL he was appointed in 1900, and only lasted about 2 years in the position.
[3] They didn't switch from bandits until much later OTL.
[4] Again, much earlier than OTL.
Next time, we'll see how Mexico develops with the Diaz Plan in action.