Support for privatization is greater in SP than in Brazil – 09/04/2023 – Market

The rate of support for the privatization of companies and public services is higher among residents of the state of São Paulo than in the rest of Brazil.

A Datafolha survey shows that 42% of São Paulo are in favor of transferring state-owned companies to the private sector, while 38% of the Brazilian population share the same opinion.

Opposition to privatizations is lower among people from São Paulo: 43%, compared to 45% nationally. The minority (3%) say they are indifferent, and 12% of respondents do not know (14% nationwide).

The Datafolha survey was carried out between the 3rd and 5th of April, in 65 municipalities in all regions of the state of São Paulo. 1,806 face-to-face interviews were carried out with people over 16 years old. The margin of error is plus or minus 2 percentage points.

The survey shows that support rises to 51% of residents of the state who claim to know what privatization is and to be well informed on the subject. In this cut, 46% say they are against it.

The rate of support for privatizations in the state of São Paulo is also higher among men, people with more education and higher incomes.

Most respondents who earn more than ten minimum wages (57%) support privatization, while 36% of those earning up to two minimum wages say the same.

Among those with higher education, 48% agree with the sale of public companies —ten percentage points more than the result among people with elementary education.

A similar difference is perceived in relation to gender. Almost half of male respondents (47%) are in favor of privatizations, while 37% of females are in favor.

Regarding the rejection rate, the opposition is higher among those who disapprove of the Tarcísio de Freitas government (65%) and among PT sympathizers (56%).

The Datafolha survey also heard the opinion of respondents on the transfer of specific companies and services to the private sector.

The results indicate that support from São Paulo is greater for the privatization of roads and airports, and less for public banks, Petrobras and Sabesp.

Roads and highways had the highest rate of support, with 54% of respondents saying they were in favor of privatization —39% opposed.

Half of the citizens of São Paulo (51%) also said they were in favor of granting airports.

Data show that residents of the state are more approving of privatization in these sectors than the rest of the Brazilian population.

In the country, 48% agree with the transfer of roads and highways to the private sector, and 47% approve in the case of airports.

The list of items that had the greatest rejection is led by public banks. Most respondents (55%) say they are against the privatization of these institutions, while 38% support it.

Sabesp comes in sequence, with 53% of São Paulo declaring rejection, and 40% support.

A similar proportion is seen when the issue is the sale of Petrobras: 52% are against, 40% in favor.

Datafolha also created an index to measure the degree of adherence to the privatization of state companies and services. Each item in which the interviewee said he was in favor of privatization was considered one point. The higher the score, on a scale of 0 to 10, the greater the degree of adherence — and vice versa.

The results indicate the profile of those who support and reject privatization in the state of São Paulo. The most pro-privatization group is made up of supporters of the PL (47%) —the party in which former president Jair Bolsonaro ran in the 2022 presidential election— and supporters of Tarcísio’s management in the state government (33%).

The antiprivatist view prevails among women (42%), PT sympathizers (47%) and those who disapprove of the São Paulo governor’s administration (49%).

Paulistas are divided on the benefits of privatization

The survey also heard the opinion of respondents on the benefits of granting state companies and services.

There are 46% who say that privatization brings more benefits than harm to the Brazilian economy. A similar proportion (45%) says the opposite: that the process is more harmful than beneficial.

The percentages are not very different from those observed in relation to the Brazilian population.

However, more than half of respondents (57%) say that private companies’ products and services are better than those offered by public companies. The percentage reaches 62% among young people aged 16 to 24 and 64% among those aged 25 to 34.

Among those aged 60 and over, 50% say products and services from companies are better, while 25% think they are worse than those from public companies.

The positive evaluation of private products and services is also higher among men (64%), people with more education (68%) and those who have a monthly family income between five and ten minimum wages (69%).

In terms of price, 68% assess the products and services of private companies as more expensive than those offered by state companies. The perception prevails among those between 16 and 24 years old (78%) and those who are against privatizations in general (80%).

Regarding corruption, the Datafolha survey points out that opinions are divided. For 42%, the level of corruption is lower in private companies, while 41% believe that state-owned companies have fewer cases.