In the past, publicly owned corporations dominated the Brazilian economy. According to Felipe Montoro Jens, privatization began in the early 1980s because of a debt crisis. Based on a report released by the country’s National Confederation of Industry (CNI), modernization in Brazil could only be achieved through privatization of infrastructure.
Felipe points out that despite the increase in a number of privately owned companies at that time, publicly owned companies were also on the rise. Furthermore, the 1990 National Privatization Program laid a foundation on how privatization was supposed to work. The government proposed private corporations as standardized economic-reform platforms. They included sanitation, telecom, electricity, banking, and transportation corporations.
In 2004, the Brazilian government implemented the Public-Private Partnerships Act (PPPs). The telecom sector was the first one to be managed by private agents after the enactment of the act. In order to regulate competition, the government implemented the General Concession Plan back in 2008.
In addition to the PPPs act, the National Economic and Social Development Bank (BINDES) was tasked with the role of determining the quality of Brazilian privatization programs. BINDES was also responsible for establishing the quality of these programs.
About Felipe Montoro Jens
As a reputable finance executive, Felipe Montoro Jens served in the finance departments of the UK, Brazil, and Singapore. He acquired his knowledge in finance from Fundao Getilo Vargas (FGV). He also graduated with an international management degree from the American Garvin School of International Management.
Felipe Montoro Jens is an expert on infrastructural development matters. He uses his finance knowledge to discern the impacts of public-private partnerships on infrastructural development in Brazil. According to him, PPPs help in minimizing waste and fostering basic sanitation services in Brazil. Felipe is also a former director of Braskem S.A. He served in this capacity from 2010 to 2013.