The debt crisis witnessed in the late 1980s marked the beginning of privatization in Brazil. To achieve modernization, it became necessary for the country to participate in the infrastructure sector. According to Felipe Montoro Jens, the country’s political environment in the 1930s led to the birth of privatization concept in the infrastructure sector. This concept witnessed a continuous growth in the next 50 years.
Privatization eventually became a standardized economic reform advocated by the government. This led to the formation of the National Privatization Program in mid-1990. Later, the Concessions Law was passed earmarking some industries as a top priority in the privatization agenda. These industries included transportation, sanitation, electricity, telecommunications, and banking corporations. The telecommunication sector became the first industry to be privately controlled.
Brazil has continued to undertake significant steps towards private capitalization in the 21st century. The country passed the Public Private Partnerships Act (PPPs) in 2004 and created the General Concession Plan in 2008. These steps have resulted in an impressive development run lasting for more than a decade. Another essential part of this process has been the establishment of quality of privatization programs operated by the National Economic and Social Development Bank (BNDES).
About Felipe Montoro Jens:
Felipe Montoro Jens is a finance professional from Brazil. In the course of his career, Mr. Jens has served in various senior management positions in different companies. His expertise and leadership skills have been instrumental in these companies’ success. He holds a degree in international management from Thunderbird School of Global Management.
As a specialist in infrastructure, Mr. Jens professional opinion has been sought on several occasions in Brazil among them being the country’s partnership with the National Bank for Economic and Social Development. His unique and valuable leadership continues to be of great value to Brazil’s economic environment.