Should Brazil really privatize its assets?

Since the presidency of Fernando Collor, the topic of privatization has become a hot-button issue in Brazilian politics. In the opinion of many, the country is lagging behind the rest of the world and it is time for the state to relinquish control of companies. Others see the wave of privatization as a deterioration of public property, earned at a high cost. It is a controversial subject, even in countries which no longer have state-owned businesses.

For instance, a recent study showed that a significant part of the population of the United Kingdom supports the renationalization of important sectors of infrastructure. Other countries around the world have regretted privatizing the water and sanitation industry.

As of the presidency of Fernando Henrique Cardoso (1995-2002), Brazil has begun to sell off its state-owned companies, such as mining company Vale do Rio Doce, telecommunications companies, airports, as well as granting the right for businesses to profit from the country’s highways. The administrations of Luiz Inácio Lula da...