wages and promote economic openness and trade liberalization. Selected policies included the gradual reduction of tariffs (with the selective protection of certain key industries), an export financing mechanism through the creation of a Foreign Trade Bank (similar to the American Ex-Im Bank), reduction in customs duties, implementation of anti-dumping mechanisms and the use of government-generated demand for high-tech sectors. On paper, the PICE had seemingly contradictory goals: to stimulate the entry of foreign companies while increasing local innovation. Later studies by the Institute of Applied Economic Research (IPEA), an independent government think tank, argued that the policy seemed to have produced that very contradictory effect: local production saw improvements in quality and productivity in face of foreign competition, but it simultaneously curbed domestic innovation due to unrestricted competition from imported technology. National Privatization Program (PND) While previous privatizations had been conducted by the government in the 1980s, at time of Collor's inauguration, no large-scale privatization program had been attempted. Sixty-eight different companies were added to the PND and slated for privatization. Unlike traditional privatization programs, which sought to finance a government's deficit, the PND had a stated goal of providing the government with the means with which they could purchase back the public debt. Government bonds were used in large quantities as currency to pay for privatized companies. Altogether, some 18 companies worth US$4 billion were privatized between 1990 and 1992, mostly in the steel, fertilizer and petrochemical sectors. The PND also ended several government monopolies whose possible negative social impact was expected to be countered by the increased competition. This increased competition, resulting from the aforementioned PICE policies, was thought to reduce the chance of the emergence of oligopolies. See also Timeline of Brazilian economic stabilization plans List of economic crises in Brazil References External links Collor´s Official web site, The Collor Plan Collor´s Official web site, Did you know? Currencies of Brazil Economic crises in Brazil 1990s economic history