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:
“Disney World has acquired by now something of the air of a national shrine. American parents who don’t take their children there sense obscurely that they have failed in some fundamental way, like Muslims who never made it to Mecca.”
—Simon Hoggart (b. 1946)
“The last public hanging in the State took place in 1835 on Prince Hill.... On the fatal day, the victim, a man named Watkins, peering through the iron bars of his cell, and seeing the townfolk scurrying to the place of execution, is said to have remarked, ‘Why is everyone running? Nothing can happen until I get there.’”
—Administration for the State of Con, U.S. public relief program (1935-1943)