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Oliveira, Gesner; Fujiwara, Thomas --- "Regulation in Brazil: Retrospect and Prospects" [2006] ELECD 531; in Marsden, Philip (ed), "Handbook of Research in Trans-Atlantic Antitrust" (Edward Elgar Publishing, 2006)

Book Title: Handbook of Research in Trans-Atlantic Antitrust

Editor(s): Marsden, Philip

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781845421816

Section: Chapter 14

Section Title: Regulation in Brazil: Retrospect and Prospects

Author(s): Oliveira, Gesner; Fujiwara, Thomas

Number of pages: 30

Extract:

14 Regulation in Brazil: retrospect and
prospects1
Gesner Oliveira2 and Thomas Fujiwara3


1 Introduction
The objective of this chapter is to assess the Brazilian regulatory frame-
work and discuss the prospects for regulation in Brazil. It is impossible to
overstate the importance of adequate regulation for development. GDP
and productivity growth are quite sensitive to investment in infrastructure.
The latter, in turn, depends on a good regulatory framework.
This study is divided into six sections. Section 2 provides a historical
perspective on Brazilian economic regulation. Section 3 contains the major
issues concerning the Brazilian regulatory agencies. Section 4 assesses the
situation of the regulatory framework for five sectors: telecommunications,
electricity, sanitation, petroleum and natural gas. Section 5 discusses finan-
cing problems with special emphasis on public­private partnerships (PPPs).
A final section contains a possible agenda for regulatory policy in Brazil.

2 Brazilian regulation in historical perspective
The institutional aspects of the Brazilian economy during the 1980s date
back to the process of industrialization of the country since the beginning
of the century and more clearly after the 1930s. Under the so-called `import
substitution model', the State built up a productive structure, mainly
involving infrastructure and intermediate goods and services, in order to
induce industrialization. In addition to the prominent presence of the state,
this model was also characterized by a closed economy producing mainly
for the domestic market.
The increasing importance of the state as a regulator relative to its pres-
ence in the production of good and ...