New Brazilian president Michel Terner is taking drastic measures to revive the country’s lackluster economy. His strategy is to privatize the many public works which the Brazilian government can no longer afford to manage. It reminds some of the old joke about the Brooklyn Bridge being for sale — if you thought you could really buy the iconic bridge you were a sucker. But if you think you can buy one of Brazil’s major airports, you’re no sucker — you’re right. You just have to be the highest bidder.
Terner says Brazil will sell 4 airports, mines, oil and highway construction projects, and other currently state-owned operations. The move resembles the way the US privatized much of its prison system in the 1980s, a privatization that has recently been reversed. Brazil’s assets will be sold at auction. Foreign bidders are welcome.