For countries as diverse as China and Mauritius, Special Economic
Zones (SEZs) have been a powerful tool to attract foreign investment,
promote export-oriented growth, and generate employment; for many
others, the results have been less than encouraging. While the benefits
and limitations of zones will no doubt continue to be debated, what is
clear is that policymakers are increasingly attracted to them as an
instrument of trade, investment, industrial, and spatial policy. Since
the mid 1980s, the number of newly-established zones has grown rapidly
in almost all regions, with dramatic growth in developing countries. In
parallel with this growth and in the evolving context of global trade
and investment, zones are also undergoing significant change in both
their form and function, with traditional export processing zones
(EPZs) increasingly giving way to larger and more flexible SEZ models.
This new context will bring significant opportunities for developing
countries to take advantage of SEZs, but will also raise new challenges
to their successful design and implementation.
This volume aims to contribute to a better understanding of the role
and practice of SEZs in developing countries, in order to better equip
policymakers in making effective decisions in planning and implementing
SEZ programs. It covers some of the emerging issues and challenges in
SEZs – including upgrading, regional integration, WTO compliance,
innovation, the environment, and gender issues – with practical
case examples from SEZ programs in developing countries.
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