Brazilian President Michel Temer signed a measure that paves the way for the privatization of Eletrobras, Latin America’s largest power company, according to a government official. Read full article
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Brazil needs to sell off it's State run companies, except for perhaps those that are truly of strategic importance, such as Itaipú hydroelectric. In the hands of the private sector, they will be administered far more efficiently and will not be used politically. The market sees this step as highly positive, reflected by the value of the the Eletrobras shares. With regards to the alleged 70% of Brazilians - according to Datafolha - who are against the privatization of State-owned companies, are those directly employed by them, already used to the privileges conceded by State owned companies - in detriment of society as a whole, that must pay for their inefficiency - and misguided people who have little comprehension of how the enormous subsidies paid to these companies, to keep them afloat, drain funds that could otherwise be used better.Dec 31st, 2017 - 05:39 pm - Link - Report abuse 0
@JBJan 02nd, 2018 - 01:44 pm - Link - Report abuse 0
REF: In the hands of the private sector, they will be administered far more efficiently and will not be used politically:
Theoretically - in principle - makes Perfect Sense.
BUT in practice; which Big-Industry works independently - without ANY kind of meddling by the Corrupt Politicians?
@:o))Jan 02nd, 2018 - 02:06 pm - Link - Report abuse 0
At least, in the hands of the private sector, the government cannot stick its hand in our pockets to cover the enormous deficits.
The meddling of the corrupt politicians in the private sector is not a Brazilian invention, but they certainly perfected it and took it to levels never seen before...
@JBJan 02nd, 2018 - 09:30 pm - Link - Report abuse 0
True! My personal compliments to them:
Not surprisingly, Brazil's corruption-accused president Michel Temer is privatizing Electrobras.Jan 04th, 2018 - 07:17 am - Link - Report abuse 0
State companies with captive customer base--where advertisement budgets or price competition are unnecessary--make the corporate world salivate.
In spite of all the cliches about efficiency and other pink-coloured tales, most privatizations end up charging customers more, making services worse and still take all sorts of subsidies and corporate welfare gifts, kindly provided by the sell out government. Ending corrupt politician meddling? Don't make me laugh.
...the alleged 70% of Brazilians...who are against the privatization...are those directly employed by them, already used to the privileges conceded by State owned companies, notes Jack Bauer.
No s...t! Working in a legal, registered job really IS a high privilege in Brazil, where informal employment for peanuts is the norm. Still, Jack Bauer sees something anti-natural or sinister intentions in those who oppose privatization.
Poor Brazil, headed by an allegedly corrupt president, brought to power with the excuse of taking out another allegedly corrupt president.
@JB:Jan 04th, 2018 - 12:43 pm - Link - Report abuse 0
REF: Brazil needs to sell off the State-Run companies, except for perhaps those that are truly of strategic importance:
Brazil not only must sell ALL the White-Elephants & the Eternally Loss Making State/Fed-Run Industries; they MUST also rent/sell [get rid of] the States which contribute nothing towards the progress of the country and are burdens on the Fed-Govt & on the other states!
REF: Poor Brazil, headed by an allegedly corrupt president, brought to power with the excuse of taking out another allegedly corrupt president”
Brazil has NO option but to replace one corrupt party &/or Government with ANOTHER Corrupt party &/or Government. But that's OK - the people are already used to and accept such situations VERY calmly. They are greatly upset only if their favorite team loses. REF:
EMJan 04th, 2018 - 07:11 pm - Link - Report abuse 0
Why d'you insist on talking about what you have no clue ? Your silly remark, ”Still, Jack Bauer sees something anti-natural or sinister intentions in those who oppose privatization” just proves how little you know about it. But for what it’s worth, I’ll just explain the basics to you - Eletrobras is a group of dozens of companies, generating & commercializing hydro and thermoelectric power to the consumers…a government monopoly, which renders a pretty shitty service, 'n charges what it wants as there is no competition.
Your comment, “…make the corporate world salivate”, would be true only if in the privatization of the dozens of companies, they all went to the same bidder, i.e., becoming a private monopoly (virtually impossible). The current monopoly does NOT favour the consumer ; Just fyi, when the power that supplied energy to São Paulo & Rio came from the Canadian Light & Power company, there were no power cuts or blackouts, which have become quite frequent after nationalization (lack of maintenance and investment to cope with demand). But just to explain why I think privatization is the only solution, take note : the cost that is transferred to the consumer as a result of the huge deficits and the interest paid out on loans to cover them, is INFINITELY GREATER in value (‘per capita’) than a possible increase in one’s energy bill, provided that actually happens as you allege it will, after privatization. Eletrobras, over the last 15 years, racked up a loss of approximately R$ 250 billion, and currently has an accumulated “primary” deficit (before paymt of interest on the loans) of roughly R$ 167 billion. And thanks to your darling Dilma’s meddling with the energy system (‘populist’ subsidies in election year, which later had to be scrubbed ‘n paid back at a premium – by the consumer ), the company increased its debt by R$ 40 billion from 2012 to 2015. And finally, d’you have any idea of the company's worth, on the market ? only R$ 20 billion...