First presidential term (1996–2000)
The 1994 presidential election results, which resulted in a reelection of President Joaquín Balaguer, were widely opposed by runner-up opposition leader José Francisco Peña Gómez and his party. In the meantime, the international community rose their concerns on the tightening of the political tensions and fear the country was on the verge of a civil uprising. Upon an official agreement widely known as "Pact for Democracy" ("Pacto por la Democracia" in Spanish) a special election was scheduled for May 1996 and President Balaguer acceded to not run in this election as part of the arranged treaty. PRSC opted to present Vice-president Jacinto Peynado as their candidate, however PRSC supporters feared he was not properly endorsed by their historical leader, therefore creating a vast independent mass of electors.
In the first-round election on 16 May 1996 Fernández received 38.9% of the votes in the first round achieving second place behind José Francisco Peña Gómez and PRD. Peynado obtained 15% of the votes, the lowest outcome in Balaguer's party history which initiated a long-term downfall. After 2010 Presidential election, PRSC lost briefly its official recognition as a majority party, but regained it after an alliance with PLD was announced by Leonel Fernández for 2010 mid-term elections, in where both parties achieved 100% of Senate positions and obtained over 2/3 of the seats on the Chamber of Deputies. In the run-off election, held on 30 June 1996, the "Patriotic Front" integrated, and Fernández thus secured 51.2% of the votes to win the election. He was sworn in as president on 16 August 1996, succeeding Balaguer.
During his term in office, Fernández's political agenda was one of economic and critical reform. He helped enhance Dominican participation in hemispheric forums, such as the Organization of American States and the Summit of the Americas. The Dominican economy enjoyed an average growth rate of seven percent, the highest in Latin America for that period, and was among the highest in the world along with South Korea's and the People's Republic of China's. Inflation was stabilized in the low single digits, also among the lowest of Latin America.
Fernández also began a visionary plan to run the Dominican Republic. When developers proposed the country's first modern port during his first term, he said that "We could be the Singapore of the Caribbean". In Santo Domingo and Santiago, which comprised 40% of the country's population, he favored "mega-projects", building numerous highways and tunnels which improved transit across the greater extent of these cities and created OMSA (Metropolitan Office of Autobus Services in English). His administration also gave incentives for foreign direct investment.
In 2000, Fernández was unable to run for a consecutive term as the 1994 constitution prohibited it. His party held primaries to elect a presidential nominee, which were won by Danilo Medina with 52% of the votes against Vice-president Jaime David Fernández Mirabal. Medina, who was sworn as the PLD candidate for the 2000 presidential election, was defeated by the PRD candidate, Hipólito Mejía. Mejia did not satisfy the 50% rule to avoid a feared run-off election, but Medina, who placed second, recognized Mejia's win immediately.
