Throughout much of the history of Latin America, the monopoly has played a dualistic and outsize role that makes it as much an integral part of the modern social and political landscape as, perhaps, any other institution.
While most people in highly developed countries reflexively view monopolies as a net social cost, throughout the developing world of Latin America, their role has been far more ambiguous. In countries where there still is not modern, basic infrastructure throughout much of the territory, monopolies have played a role in bringing primitive and benighted people’s out of the darkness of pre-industrial living conditions and into the modern era according to economia.estadao.com.br.
There certainly is no final verdict on the whether or not the Latin American monopoly has been a net benefit or cost to the societies in which it was installed, and it would be foolish to proclaim that all the good things that modernity has brought to the region more than offset the terrible price that was, at times, exacted on the local population. But there can be no doubt that, at least in certain instances, monopolistic enterprise provided the fastest way forwards for peoples and countries that were hopelessly mired in darkness and savagery.
Examples include the United Fruit Company, which brought widespread economic prosperity throughout much of deeply impoverished Central America, while also bringing methods of sustainable farming to the region. International Telephone and Telegraph is an example of a company that brought first-world communications infrastructure to much of South America, at a time when the majority of its residents throughout Peru, Colombia and Venezuela had never even used a telephone. Telmex is another example of a communications firm with an iron grip monopoly over its markets that, nevertheless, was able to spread modern communications infrastructure to the extent that, today, Mexico frequently ranks as having some of the best internet service anywhere in the world.
Read more on folha.uol.com.br
Is Luiz Carlos Trabuco seeking to make Bradesco a Monopoly
So when we turn to the case of Bradesco, the largest bank in Brazil, we cannot be so quick to dismiss as an automatic net negative the apparent aspirations of Luiz Carlos Trabuco as CEO to turn his bank, Bradesco, into the unquestioned monopoly of the Brazilian banking space.
Already, it is clear that Bradesco has done a great deal of good for the state of Sao Paulo and the country as a whole. Through its intense campaigns to raise technological awareness and its rollout of some of the most innovative internet banking platforms in all of Latin America, Bradesco has brought more than half of its 27 million clients online. This is a remarkable achievement for a company operating in a country that, just a decade ago, was populated by a population of which more than three quarters barely knew how to use a computer.
Bradesco has also been able to drive down the prices of banking services throughout its many markets. This has especially been true since it began its concerted effort to undermine the market share of chief rival Itau Unibanco. Seeking to undercut Itau Unicanco in all of its markets, Bradesco has been following a Rockefeller-like strategy of running everyone who it cannot buy out of business.
Whether or not this proves to be a successful strategy in the long run has yet to be seen. However, Trabuco has proven himself to be a formidable businessman, turning nearly everything he has touched throughout his career to pure gold. If he can pull off making Bradesco the number-one, uncontested champion of the Brazilian banking market, the prize could be the largest ever reaped by a Latin American financial institution.
Learn more about Luiz Carlos Trabuco: http://www.infomoney.com.br/blogs/bolsa/o-investidor-de-sucesso/post/7002925/quem-substituira-trabuco-comando-bradesco-nomes-estao-cotados-tudo-pode