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:
“Nothing is so well calculated to produce a death-like torpor in the country as an extended system of taxation and a great national debt.”
—William Cobbett (1762–1835)
““He swore that day till the leaves shook on the trees. Charming! Delightful! Never have I enjoyed such swearing before or since. Sir, on that memorable day he swore like an angel from Heaven!””
—For the State of New Jersey, U.S. public relief program (1935-1943)