The privatization process in Brazil has been gradual and consistent since the late 1980s. The process was necessitated by the inability of the state to run most sectors of the country’s economy due to huge financial debts. Among the most knowledgeable people regarding Brazil’s privatization is Felipe Montoro Jens.
The Privatization Process
According to Felipe Montoro Jens, and in reference to research conducted by the National Confederation of Industry (NCI), privatization in Brazil unlocked a lot of investment potential that the state could not maximally utilize. He notes that the state was doing well between 1930 and 1980 regarding setting up and running state-owned institutions until the wind of economic reforms intensified in the country. From the late 90s and going into the early 1990s, the government came up with the National Privatization Program that oversaw the transition of state-controlled corporations to private entities.
Aeronautical and petrochemical industries were the first to be privatized. What followed was the Concession Law of 1995 that made it possible for the government to privatize telecommunication, transport, and electricity sectors in the country. Montoro explains that the same law legalized the sale of state banks.
Felipe Montoro Jens explained that the Private Partnership Act (PPPs) was enacted and it opened the gates for more privatization. This development led to the creation of the National Telecommunication Agency, which took over from the Ministry of Communication. What then followed was the creation of the General Concession Plan in 2008 and three years later, the General Plan for the Universalization of Fixed Telephone Service in 2011.
Being the chairman of Concessionária do Centro Administrativo do Distrito Federal S.A., Mr. Felipe Montoro Jens has a lot of experience in the Brazilian economic sector. Before he took up his current job, Jens worked for Concesionaria Trasvase Olmos S.A. and Braskem S.A.
Felipe Montoro is based in Rio de Janeiro. In his late 40s now, he has attachments with six different sectors of the Brazilian economy, either as an executive or as a board member.