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 to be lamented that the principle of national has had very little nourishment in our country, and, instead, has given place to sectional or state partialities. What more promising method for remedying this defect than by uniting American women of every state and every section in a common effort for our whole country.”
—Catherine E. Beecher (1800–1878)
“Wags try to invent new stories to tell about the legislature, and end by telling the old one about the senator who explained his unaccustomed possession of a large roll of bills by saying that someone pushed it over the transom while he slept. The expression “It came over the transom,” to explain any unusual good fortune, is part of local folklore.”
—For the State of Montana, U.S. public relief program (1935-1943)