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- Special Economic Zones
- When to Use an SEZ
- Problems SEZs can Help Solve
Problems SEZs can Help Solve
At a Glance
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SEZs cannot contribute to all national economic objectives at once. They are best deployed for narrow and clearly defined purposes.
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Depending on the specific context, SEZs can help solve problems like a lack of infrastructure, weak integration with international markets, low levels of foreign direct investment, pent-up local demand, and excessive red tape.
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Clear objectives help to guide the design and implementation of SEZs, while well-defined targets and metrics help assess—and adjust—SEZ programs once they’re underway.
Case Studies
Key Resources
- Special Economic Zones: Progress, Emerging Challenges, and Future Directions (Thomas Farole, Gokhan Akinci)
- The Case for Special Economic Zones in Africa (Carol Newman, John Page)
Topic Briefing
Depending on the specific context, SEZs can help economies to resolve a specific set of problems, including lack of access to land or to suitable infrastructure, weak integration with international markets, low levels of employment, low levels of foreign direct investment, pent-up local demand, and a high administrative burden. SEZs are most likely to be appropriate where many of these constraints are present in an economy.