The stabilization process in Brazil, initiated in mid-1994, successfully brought annual
inflation down to one-digit figures in less than three years. This process included a wide program
of economic reforms. For instance, the size of the public sector was substantially reduced in this
period through privatization of state companies operating in sectors like telecommunications,
chemistry, railroads, banking and mining. Likewise, the trade liberalization was deepened through
reduction of import tariffs and elimination of non-tariff barriers. The financial system was
submitted to a full-fledged restructuring with unsound institutions liquidated, merged or
restructured and prudential regulation updated.
The stabilization process in Brazil, initiated in mid-1994, successfully brought annual
inflation down to one-digit figures in less than three years. This process included a wide program
of economic reforms. For instance, the size of the public sector was substantially reduced in this
period through privatization of state companies operating in sectors like telecommunications,
chemistry, railroads, banking and mining. Likewise, the trade liberalization was deepened through
reduction of import tariffs and elimination of non-tariff barriers. The financial system was
submitted to a full-fledged restructuring with unsound institutions liquidated, merged or
restructured and prudential regulation updated.
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