Brazil’s identity with the state has always been a strong one from time immemorial. Felipe believes that this presence intensified in the 20th century with its return in the 80’s when privatization was rampant in the country as a result of an existing debt crisis. The authorities believe that the country had to take this move for it to be modernized as infrastructure was crucial. The process is also considered a key step to meeting investment needs in Brazil.
According to Felipe Montoro Jen, the process occurred in the following manner. The 20th century came with the notion of a powerful state experience. The political environment back then in 1930’s forced the start of privatization as a means of developing infrastructure. For the next 50 years, Brazil enjoyed stability as the government mainly owned the businesses. However, in the 1990s the privatization process was initiated with the major industries included in privatization being steel industries, petrochemical firms as well as aeronautical industries.
In 1995, the government was involved in passing a law that listed a number of industries as being priorities for privatization. These were the sanitation industries, transport industries, banking corporations, telecommunication industries, and the electricity industry. The government went ahead to approve public-private partnerships in 2004, making the telecommunication industry the first sector to be under the control of private agents. To understand this success, it helps to note that before the private capitalizations regulatory agency was put in place to manage the process and guarantee success.
About Felipe Montero
Felipe is an expert in finance and is currently holding the position of chief financial officer. His position allows him to hold office as treasurer, planner, and controller in Brazil’s financial divisions, UK, and Singapore. He also features in a number of company’s boards. He has unique academic qualifications that include a degree from Fundao Getlio Vargas as well as a management degree from Thunderbird in the US.