Felipe Montoro Jens Explains The History Of Business Privatization In Brazil

A study conducted by the National Confederation of Industry in Brazil showed that the country's private enterprises were critical for modernizing its financial infrastructure. Privatization also satisfies the demand for investments in the private sector. The historical development process of privatization was complex, and Felipe Montoro Jens recently explained it in simpler terms.

An Explanation From An Infrastructure Project Expert

Brazil's government used to have complete control over the country's infrastructure. In 1930, that changed after a new political regime gained power. There was continual growth over the next five decades that included a smaller scope of regulatory power for the government. One of the most prominent points of change was the dissipation of state-owned enterprises. In the 1980s, the biggest part of the privatization process started, and it was inspired by the debt crisis.

Privatization was an integral part of economic reform by 1990. The government implemented the National Privatization Program that year. Companies in steel, petrochemicals, aeronautics and several other industries became privatized. The government passed the Concessions Law in 1995, and that resulted in privatization of many businesses in the transportation, telecommunication and sanitation industries. Also, several government-run banks were sold and privatized.

Almost a decade after mass privatization started, the Public Private Partnership Act was passed. By that time, the telecommunications sector was privately controlled. It was the country's first infrastructure component to be completely privatized. In 1997, private agents pushed for the General Telecommunications Law to be passed. It removed the responsibility of providing services from the government's hands. Additionally, the National Telecommunications Agency was formed to regulate telecommunications. Although applicable tariffs were set by the Ministry of Communications in the past, Anatel is responsible for setting them now. The purpose of the organization is to encourage a competitive market.

Telebras was the name of the state-owned telephone system that monopolized Brazilian telecommunications before privatization. The company was divided into 12 segments that each became single holding companies. There was an auction to sell each component, and the purchasing limit per party was one holding to prevent another monopoly. The auction was held in 1998, and it turned the telecommunications industry into a successful and competitive market.

Organizing and consolidating regulatory agencies before pushing privatization was an important step in the process. If the agencies had not been reduced or eliminated, the privatization process may not have been a success. New standards were first established to lay the groundwork for how private companies could operate, and deciding powers were removed from the government. The new standards also improved service efficiency, which has been a welcome change to Brazil's consumers. Sustainability issues were addressed recently, and that led to the development of the General Concession Plan of 2008 and several other regulations.

About Felipe Montoro Jens

In addition to about 10 other prestigious positions, Felipe Montoro Jens serves as a leader at Arboreoland Empreendimentos Imobiliarios, Concesionaria Interoceanica Sur Tramo 2 and AC Energia SA. He is known throughout Brazil as an expert in infrastructure. Mr. Montoro Jens serves on multiple boards including Concesionaria do Centro Administrativo, San Antonio Energia SA, Foz do Brasil SA and others.

Mr. Montoro Jens resides in Rio de Janeiro. It is where most large companies that he is affiliated with have their headquarters. According to his official website, Mr. Montoro Jens attended Getulio Vargas Foundation to earn his undergraduate degree. The school is known for preparing students to serve in management roles within the private sector. After that, Mr. Montoro Jens went on to earn a graduate degree in management from the Thunderbird School of Global Management in Glendale, Arizona.


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