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International Policy
April 1997
Brazil Wakes Up To Privatization	While its Latin American neighbors were selling off state-owned companies at a handsome clip over the past decade, Brazil's privatization efforts lagged behind. Now that country plans a sweeping auction of companies worth billions of dollars over the next two years. Since 1991, Brazil has only sold 55 companies such as steelmakers and petrochemical plants, for a total of $15 billion. But beginning tomorrow, it will launch the sale of state-owned companies worth about $50 billion. One company supplies 15 percent of all Latin America's electricity, another is among the world's top five power companies in terms of market capitalization and a third is the world's largest producer of iron ore. Foreign investors are expected to be among those bidding, now that Brazil's economic reforms have put an end to three decades of chronic inflation and the government has liberalized trade. Foreign investors will be looking around for local partners since some of the deals prohibit foreigners from owning more than a minority stake in the companies. Some observers predict these liaisons will help change Brazil's previously introverted business world. Source: "Let the Party Begin," The Economist, April 26 - May 2, 1997.