Home investment (Updated 2019) Felipe Montoro Jens Explains The History Of Privatization In Brazil

(Updated 2019) Felipe Montoro Jens Explains The History Of Privatization In Brazil



Brazil’s historical shift in the privatization process has been tied to infrastructure changes. The National Confederation of Industry conducted a study about this topic. The organization stated that the country’s infrastructure-related sectors have been necessary for the modernization of Brazil. To the CNI, the country’s privatization process is also important for meeting investment demands. Felipe Montoro Jens is a Brazilian infrastructure expert, and he recently explained the history of privatization in Brazil.


Who Is Felipe Montoro Jens?


Felipe has more than two decades of experience in infrastructure. He earned a master’s degree in business management at the Thunderbird School of Global Management in Arizona, and he studied at Brazil’s prestigious Getulio Vargas Foundation before that. To show his commitment to improving infrastructure in Brazil, Felipe served on several administrative boards. He held distinguished roles with notable companies, and he specialized in issues such as economic waste, corporate waste and government solutions. His training at the Getulio Vargas Foundation properly prepared him for positions in both the public and private sectors.


The History Of Privatization In Brazil


Brazil’s history had a stronger government presence in the past. It was especially notable during the 1900s. According to the research report from the CNI, the political regime that was in power in the 1930s started the modernization process for the country. During the next five decades, there was considerable growth within the government. Also, that period marked the growth of state-owned enterprises. In the 1980s, there was a major debt crisis in Brazil, and that time marked the main deviation in the privatization process.

The government made privatization a part of its economic reform program in 1990 when it established the National Privatization Program. With this new benefit, companies in the petrochemical, aeronautics and steel sectors experienced privatization. The CNI’s report also noted that the 1995 Concessions Law prioritized the privatization of the transportation, telecommunications, sanitation and electric energy sectors. Additionally, it ordered the sale of state-operated banks.

In 2004, the historic Public Private Partnerships Act was established. Today, the partnerships that come from this act are commonly called PPPs. The telecommunications sector was the first major infrastructure-related sector to become privately controlled in Brazil. According to the report from the CNI, this sector was the best example of a smooth privatization transition in the country.

The 1997 General Telecommunications Law made the state responsible for regulation but not for service provisions. After that time, the National Telecommunications Agency was formed for regulatory purposes. ANATEL took over the task of determining tariffs and relieved the Ministry of Communications of its former duties. With this change, the goal was to make a more competitive environment.

Felipe Montoro Jens also highlighted the example of Telebras. There were many efforts to make Telebras more productive in the 1990s. It was divided into 12 separate holding companies, and each of the separate portions were auctioned off to bidders. When the auction took place, each participant could only bid on one holding. The purpose of this structure was to prevent a monopoly. After the July 1998 auction took place, the telecommunications sector was transformed in a major way. It was controlled by multiple private agents instead of by one entity.

Since regulatory agency consolidation was a critical part of the process, these steps were important for the development of standards. The standards were outlined in a clear manner to ensure that transitions were smoother. Also, this promoted competition, which led to an increase in efficiency of services. In the end, the shift was especially beneficial to Brazilian citizens who used telecommunications services. Those changes continue to benefit them today.

In 2008, the General Concessions Plan was established, and its purpose was to create a sustainable segment over time along with a plan to universalize telephone services. This plan was enacted in 2011. Felipe Montoro Jens also pointed out the importance of the governance of the privatization processes along with the centralization of operations in relation to the National Economic and Social Development Bank. Today, this financial institution supports many investment-style initiatives that fund improvement projects in all infrastructure sectors in Brazil. Felipe said that the initiatives will improve the economy over the next several decades.

Read more about Felipe Montoro Jens’ work on Brazil’s recovery here: Valor de debentures de infraestrutura bate recorde esse ano, destaca Felipe Montoro Jens

About Felipe Montoro Jens

Felipe Montoro Jens is one of Brazil’s top infrastructure projects experts. Felipe works with the government and private industries to complete infrastructure projects in Brazil. Mostly, he does consultant work for private companies, but his work with the government is more of an advisory role.

Deals between the government and private investors are called Public-Private Partnerships. Last year, Jens attended a meeting of Governors from all over Latin America to discuss whether other governments should support more Public-Private Partnerships. Jens and other supporters believe that private funding can speed up much-needed infrastructure projects.

Before becoming Brazil’s go-to infrastructure projects expert, Jens worked at Enel Group S.P.A. He worked in the project development and structured finance department. That wasn’t too different from the other positions he held at companies like Luciano Nitri Guidolin and Paulo Oliverio De Melo. Today, Jens is the most recognizable face in infrastructure in Brazil.

Like other successful professionals and infrastructure experts, Jens’s education background is represented by honors and degrees. From Oregon University to UC Santa Barbra, Jens earned two Bachelor’s degrees; one in Spanish and the other in History. He later went on to earn a Master’s degree in Kinesiology and Health Promotion.

Now, Jens’s daily routine is much calmer than a few years ago. Not only has Brazil developed into one of the most prosperous nations in Latin America, but Jens figured out how to maximize his productivity. Before, he often paid too much attention to little details that didn’t matter.

Over the years, he learned to avoid small talk at the office and ignore social media trends and naysayers. Felipe Montoro Jens focuses on important issues and discussions, even limited the length of meetings to prevent wasting time.