reclassification of state enterprise investment as a result of privatization – in telecom alone, investment fell by 0.8% of GDP with the sale of Telebras (Table 3.3). Yet, the further contraction in public investment in transport and electricity in 2002-03 cannot be attributed to accounting, since there have been virtually no privatizations in either sector since 2000. 9
Table 3.2: Investment breakdown (as percent of GDP, in constant 1980 prices) 1 Year
1971-1980 1981-1989
1990-94
1995-96
1997-98
1999
2000
Total
23.5
18.0
14.9
17.0
16.4
16.1
16.5
Residential building
4.95
4.71
4.03
3.99
4.24
3.97
3.60
Petroleum
0.95
0.88
0.39
0.35
0.36
0.45
0.51
Public Sector (excludes Transport) 2
3.00
1.43
1.86
1.65
1.68
1.10
1.20
Infrastructure
5.42
3.62
2.16
1.79
2.77
2.70
2.58
Electricity
2.13
1.47
0.85
0.52
0.79
0.77
0.67
Telecommunication
0.80
0.43
0.50
0.66
0.98
1.17
1.07
Transport
2.03
1.48
0.69
0.48
0.68
0.56
0.63
Sanitation
0.46
0.24
0.07
0.13
0.32
0.20
0.21
9.18
7.36
6.46
9.22
7.35
7.88
8.61
Others
Source: Bielschowsky (2002: 25-29). Note: 1/ Does not take into account 2007 revision in national accounts. 2/ Public Sector = non-financial public sector, excludes transport.
9
In transport, in particular, privatization took place in areas that historically had seen little investment, such as railways, and yet investment by the federal government in transport dropped from an average 1.44% of GDP in 1976‐78 to a mere 0.13% of GDP in 2002‐04 (Frischtak and Gimenes, 2005).
17