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Brazil to lift economy through privatization

Wednesday, 14 September 2016 5:09 PM [ Last Update: Thursday, 15 September 2016 10:14 AM ]

Brazil has devised a privatization program to pull the country’s economy out of recession. (Photo by Reuters)

A key feature of the program is a mechanism to auction off operating licenses for oil and gas, electricity and infrastructure projects.

Accordingly, four airports in the cities of Porto Alegre, Salvador, Florianopolis and Fortaleza will be sold by March, along with two port terminals, Russia Today reported on its website.

The government aims to raise $24 billion from the program, RT.com added. It will also offer contracts to private firms for a wide range of projects from building new roads to running mines.

The program includes the concession of an already built railway as well as the long-delayed auction of rights to oil fields and hydroelectric dams in the first and second half of 2017.

President Michel Temer, who took charge of the country two weeks ago following the impeachment of predecessor Dilma Rousseff, said the privatization program will boost growth and jobs.

“We need to open up to the private sector because the state cannot do everything,” Temer told ministers.

According to the Organization for Economic Cooperation and Development, Brazil's economy contracted 3.8 percent in 2015, and is expected to shrink a further 4.3 percent this year. Unemployment in the country is in double digits and inflation is nearly 10 percent.

Temer, who was Brazil’s former vice president, replaced Dilma Rousseff after the upper chamber of parliament voted to suspend her and began an impeachment trial against her in May. When the senate permanently removed Rousseff from office late last month, Temer took over as president.

Temer is about to remain in office for what it would have been the rest of Rousseff’s second term through 2018.

Rousseff was impeached for allegedly violating fiscal regulations by tampering the 2014 federal budget. The former president was accused of breaking fiscal rules in her management of the 2014 federal budget

She has strongly rejected the allegations, calling the impeachment a coup d’état and denouncing Temer as a “usurper.”

Brazil has been hit by waves of protests recently by Rousseff’s supporters against her ouster. The protesters have also been calling for the resignation of Temer.

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