Following the Brazilian debt crisis in the late 1980s, the solution was privatization. The CNI (National Confederation of Industry) pointed out the necessity for Brazil to take part in the infrastructure sector. By doing this, modernization would be achieved and in turn result in a meeting of the country’s investment demands. One Felipe Montoro Jens briefly gives us an insight into the development of this process.
The previous century in the South American country was marked by a strong manifestation of the state. Due to the state’s demanding political commitments, the idea of privatization was conceived. Since then, Brazil saw growth of the state alongside businesses that it owned. The privatization process involved, the aeronautical, petrochemical and steel industries. Later on, the government passed laws that would then give some specific industries priority. The industries that were to be prioritized included, telecommunications, sanitation, electricity, banking corporations, and transportation.
In 2004, the Public Partnerships Act was put in place by the government. This made telecommunications the first industry to be taken up by private agents. Plans such as the 2008 General Concession Plan were implemented to ensure the success of this strategy. The plans proved to be a success and are still working to date. Monitoring the quality of operations also contributed to the success.
About Felipe Montoro Jens
Felipe Montoro Jens is an infrastructure specialist working with the Brazilian, UK and Singapore finance divisions. Before this, he has held some positions in other places. These include being Director of Braskem SA and Director of Santo Antonio Energia SA. He has also worked for Consesionaria Trasvase Olmos where he was also Director.
Montoro is a holder of an undergraduate as well as a graduate degree. The latter he got from Thunderbird School of Global Management. He obtained the earlier upon graduation from Getulio Vargas Foundation.