The Journey That Led to the Inclusion of Private Investors in the Brazilian Economy as Narrated by Felipe Montoro Jens
The Brazilian economy is characterized by both state and privately-owned companies. The situation was, however, different at the beginning. Infrastructure expert, Felipe Montoro Jens, recently narrated the journey of privatization in the country according to the CNI survey named the Opportunities for the Privatization of Infrastructure.
At the beginning of the 20th century, Brazil had only state-owned companies. The 1930 political regime brought about the modernization of these firms. The state presence continued growing until the 80s when privatization was introduced. The motivation behind the move was the external debt crisis that had hit the country at the time. The year 1990 saw the formation of the National Privatization Program. Following economic reforms proposed by the government, many industries, such as the aeronautical, steel, and petrochemical, were privatized. The 1995 Concessions Law led to the privatization of the transport, telecommunications, electricity, and sanitation sectors. The state owned banks were also sold to private investors. This move was followed by the approval of the Public Private Partnerships Act in 2004.
In the area of Infrastructure, telecommunication was the first to be privatized. The rules that govern the industry came to play in 1997 under the General Telecommunications Law. The law gave the government the role of regulating the industry but not to act as service providers. The regulation of the tariffs by the Ministry of Communication ceased with the formation of the National Telecommunications Agency, a private regulator of the industry. Other key bodies contributing to the growth of the sector are The General Concession Plan created in 2008, and the General Plan for the Universalization of Fixed Telephone Service created in 2011.
About Felipe Montoro
Felipe Montoro Jen is a competent infrastructure expert from Brazil with massive know-how in the oil and gas industry. His other areas of expertise include finance, auditing, and project development.
Felipe Montoro is a former scholar at the Fundacao Getulio Vargas University and the Thunderbird School of Management. He studied finance and BA.