National Privatization Program (PND)
While previous privatizations had been conducted by the government in the 1980s, at time of Collor's inauguration, no large-scale privatization program had been attempted. Sixty-eight different companies were added to the PND and slated for privatization. Unlike traditional privatization programs, which sought to finance a government's deficit, the PND had a stated goal of providing the government with the means with which they could purchase back the public debt. Government bonds were used in large quantities as currency to pay for privatized companies.
Altogether, some 18 companies worth US$4 billion were privatized between 1990 and 1992, mostly in the steel, fertilizer and petrochemical sectors. The PND also ended several government monopolies whose possible negative social impact was expected to be countered by the increased competition. This increased competition, resulting from the aforementioned PICE policies, was thought to reduce the chance of the emergence of oligopolies.
Read more about this topic: Plano Collor
Famous quotes containing the words national and/or program:
“It is not unkind to say, from the standpoint of scenery alone, that if many, and indeed most, of our American national parks were to be set down on the continent of Europe thousands of Americans would journey all the way across the ocean in order to see their beauties.”
—Franklin D. Roosevelt (1882–1945)
“He believes without reservation that Kentucky is the garden spot of the world, and is ready to dispute with anyone who questions his claim. In his enthusiasm for his State he compares with the Methodist preacher whom Timothy Flint heard tell a congregation that “Heaven is a Kentucky of a place.””
—For the State of Kentucky, U.S. public relief program (1935-1943)