Debt crises necessitated the privatization of many state-owned corporations in Brazil. According to Felipe Montoro Jens, much of privatization activities happened in the 1980s going into the 1990s, and it made it possible for most sectors to be modernized. This process was to a larger extent an avenue that Brazil exploited to close the investment gaps that existed before then. Felipe Montoro was recently breaking down the entire privatization process right from 1930 all the way to the 1980s. Data from the National Confederation of Brazil indicates that indeed the investment needs were met following the privatization.
The Privatization Process
Felipe Montoro explained that infrastructure was among the first sectors to be made private in Brazil. He explained that due to changing political landscape in the country, the need for privatization arose in the 1930s. Businesses owned by the state, on the other hand, were doing well and increased significantly between 1930 and 1980. Going to the 1990s, the government started rolling out the National Privatization program that led to the privatization of industries such as aeronautical and petrochemical industries.
In quick succession, the National Privatization Program was followed by the Concessions Law. This law that was enacted in 1995 prioritized the privatization of sectors such as banking, telecommunication, and sanitation among others. Among these sectors, telecommunication was the first to be made private following the enactment of the Public Private Partnership Act in 2004.
According to Felipe Montoro Jens, the General Concession Plan of 2008 was the one established a solid base on which businesses in Brazil rest on. The plan brought order that is followed in the country until today. Felipe also noted that the National Economic and Social Development Bank (BNDES) has also played a key role in the privatization process.
Felipe Montoro Jens is a Brazilian infrastructure expert. He pursued his higher education at the American Garvin School of International Management and the Fundao Getlio Vargas (FGV).
Felipe’s expert infrastructure analysis has been sought by the Brazilian government as well as other countries such as the UK.
Find out more about Felipe Montoro Jens: http://maringa.odiario.com/politica/2017/03/felipe-montoro-jens-fala-sobre-parcerias-publico-privadas-no-brasil/2348581