Plano Collor

The plan's economic theory had previously been laid out by economists Zelia Cardoso de Mello, Antônio Kandir, Álvaro Zini and Fábio Giambiagi.

[1] The actual plan to be implemented was written by Antônio Kandir and economists Ibrahim Eris, Venilton Tadini, Luís Otávio da Motta Veiga, Eduardo Teixeira and João Maia.

[2] Rapid, uncontrolled re-monetization of the economy had been named as the cause the failure of the previous economic stabilization plans in controlling inflation.

In spite of the differences in their general economic strategies, these competing candidates failed to develop their own stabilization policies at a time of rapid price increases and risk of hyperinflation during the second half of 1989.

[5] On May 10, 1991, Zélia was replaced as finance minister by Marcílio Marques Moreira, a Georgetown-educated economist who was at the time of his nomination the Brazilian ambassador to the United States.

[9] Marcílio's plan was considered more gradual than its predecessors, utilizing a combination of high interest rates and a restrictive fiscal policy.

[5] Running along in parallel with the Collor Plan was the PICE, a program which aimed to both raise real wages and promote economic openness and trade liberalization.

[3] 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.

[3] On paper, the PICE had seemingly contradictory goals: to stimulate the entry of foreign companies while increasing local innovation.

[3] 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.