Zedillo PRI — Tequila crisis, FOBAPROA, democratic opening

Doctrine — stated goals and content

Technocratic PRI under crisis-management pressure transitioning to free-floating peso, banking reconstruction, and democratic opening. Five doctrinal pillars: (a) Tequila crisis management — 20 December 1994 "error de diciembre" devaluation widened band 15%, forced float by 22 December; peso collapsed 50% within weeks; $50B IMF-US-BIS rescue (February 1995) headed by Rubin with ESF funds; 1995 GDP -6.2%, worst since 1932. (b) Banking rescue — FOBAPROA (Fondo Bancario de Protección al Ahorro) absorbed toxic loans from 1995-1998 at ~$65B (~15% GDP) ultimately socialised via IPAB law December 1998, most expensive single bailout in Mexican history. (c) Free-float and inflation-targeting pivot — Banxico constitutional autonomy 1993 activated; formal inflation-targeting regime established 1999-2001. (d) NAFTA consolidation — despite Tequila, trade integration accelerated; maquiladora and FDI boom. (e) Democratic opening — 1996 electoral reform; IFE fully autonomous; 1997 midterms PRI lost Chamber majority for first time since 1929; 2000 Zedillo conceded defeat to Vicente Fox (PAN) ending 71-year PRI rule. Stated school: Washington-Consensus macro orthodoxy + PRI-technocratic + gradualist democratic institutionalism. Left-right: centre-right economic, centre on democracy. Popularity: August 1994 won 48.7% in cleanest PRI-era election; approval collapsed to ~20% in 1995 during Tequila, recovered to ~60% by 1999; 2 July 2000 PRI lost — Fox 42.5% to Labastida 36.1%. Coherence: trade currency-regime continuity and PRI-hegemonic electoral advantage for free-float credibility, banking-system reconstruction, and democratic legitimacy.