Argentina a cautionary tale as Brazil moves to privatize postal service

Since President Jair Bolsonaro election in 2018, his neoliberal economic tsar Paulo Guedes always had in mind the possibility of carrying out a huge privatization agenda in Brazil, which, according to him, would entail a massive reduction in the size of the state in order to finally move the country past its recession years. 

But Mr. Guedes’ plans have failed, and of today he has not managed to privatize a single state-owned company in over two years of his controversial administration — something that “frustrates” the Chicago-trained economist. This year, as recession still looms over Brazil, due to the pandemic, the government is trying again, now attempting a 100 percent privatization of Brazil’s state-owned postal service, the Correios. 

According to the Economy Minister, the proposal — which could yield BRL 30 billion to the federal budget and free the state from financial and logistical obligations — will “take the government off companies’ backs,” according to Brazilian Development Bank BNDES head Gustavo Montezano. Mr. Montezano supports the proposal, saying small and medium entrepreneurs will benefit from market competition. 

However, there are