Privatization South American Style

By Luigi Manzetti | Go to book overview

agencies, and foreign investors that, albeit slowly, Brazil had embarked on a process of economic reform of far-reaching consequences for the country's future. It produced a profound change in the way people perceived the role of the state and its responsibilities vis-á-vis society as a whole.


Endontes
1.
Latin American Regional Reports: Brazil Report, 6 July 1989, p. 2.
2.
Fernando Collor de Mello's grandfather, Lindolfo Collor, was a prominent minister during the Getulio Vargas regime in the 1930s. His father, former Senator Arnon de Mello, was a close political ally of the military regime in the 1960s and helped launch his son's political career. The military first appointed Fernando as mayor of Alagas in 1979.
3.
Collor's family owned the most important media conglomerate in the state of Alagóas, with ties to TV Globo.
4.
A notable exception was Ulysses Guimarães, the leader of the PMDB, the largest party in Congress, who wary of Collor's demagoguery decided to throw his support to Lula.
5.
Medidas provisorias are executive orders whose enforcement is valid for three months, but can be reissued and altered in content. The President can use them to solve problems deemed 'urgent' and 'relevant' to the national interest. After a month such medidas provisorias are either converted into a law by Congress or, with its tacit consent, they can be re-issued.
6.
Congress approved an amended version of the executive order with a vote of 370 to 90.
7.
The same decree (99.463) listed the first ten PEs and eighteen shareholdings in the privatization program. Later on, three other executive orders were issued including ten more companies and seventeen shareholdings in the privatization program.
8.
According to the congressional investigation, Farias was Collor's designated negotiator in charge of arranging corrupt deals with businessmen and politicians, collecting money, and then depositing it in phantom accounts at the disposal of the President, cabinet ministers, and government bureaucrats. In this way, Farias disbursed a total of $32.3 million, of which $6.5 million went directly to Collor's family. With the President's blessing, Farias acted as the gray eminence behind the throne. While holding no official position in the administration, he set up a parallel government that was in charge of the most important decisions. Senado Federal, Relatório Final da Comissão Parlamentar de Inquérito de Senado Federal ( Brasilia, March 1993).
9.
In March 1993, upon quitting, the President of BNDES publicly accused the government of 'egregious incompetence'.
10.
The SEF was eventually renewed by Congress in 1995 and 1997.
1.
Some blue chip shares that were sold affected Banco do Brasil, Vale do Rio Doce, Biobras (pharmaceutical), CBV Nordeste Industria Mecanica, Itautec (electronics), Eletrobras, Petrobras, and Salgema (chemicals), to name a few. In

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Privatization South American Style
Table of contents

Table of contents

  • Title Page iii
  • Contents vii
  • List of Figures viii
  • List of Tables ix
  • List of Abbreviations xi
  • 1 - The Political Economy of Privatization 1
  • Endnotes 30
  • 2 - Privatization in the 1980s: Politics as Usual 32
  • Endnotes 68
  • 3 - Argentina 71
  • Endnotes 141
  • 4 - Brazil 150
  • Endontes 226
  • 5 - Peru 232
  • Endnotes 288
  • 6 - The Theory and Practice of State Divestiture 294
  • Endnotes 331
  • References 333
  • Index 349
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