Privatization of Brazilian companies began in the 1980s, and this was necessitated by the debt crisis that the companies were in. Before then, most corporations in Brazil were state-owned. Felipe Montoro Jens, who watched the country make this transition, explains how it all happened. After the establishment of the National Privatization Program in 1990, several state-owned companies in a number of industries, including the aeronautical, petrochemical and steel industries, were privatized.
The fact that the government was in full support of privatization in the country helped a great deal. In fact, the Concessions Law which was passed in 1995 listed a number of sectors which were to be given priority in the privatization. These included telecommunications, electricity, banking, sanitation and transport. Several other developments have happened in Brazil over the years, with the introduction of various acts and programs to promote privatization of companies. Examples of these are the Public Private Partnerships Act which was approved in 2004 and the 2008 General Concession Plan. This has really boosted the Brazilian economy.
About Felipe Montoro Jens
Felipe Montoro Jens is a renowned Brazilian finance executive and infrastructure specialist. He is an alumnus of Getulio Vergas Foundation and the Thunderbird School of Global Management. Mr. Jens has extensive experience in a number of industries in Brazil and is therefore an authority in various fields including infrastructure, finance, and investment.
Felipe’s contribution to Brazil has been tremendous. He has done this through the numerous positions he occupies in various leading corporations in Brazil. Some of these are AC Energia, Concessionaria Interoceanica Sur Tramo 2, Empresa de Generación Huallaga SA and Foz do Brasil SA among others.
According to Felipe, privatization was the only way Brazil would be able to meet investment demands, and so far, it has been a success. A lot more economic progress is expected from the country. With executives like Felipe Montoro Jens, private companies are bound to do even better and boost Brazil’s economy further.