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- Differentiating the Value Proposition
Differentiating the Value Proposition
At a Glance
- An SEZ’s value proposition should target a clearly defined group of investors, and differentiate the SEZ from other investment locations within and outside the country.
- Differentiating factors might include the location and physical infrastructure of an SEZ, the nature and quality of services offered, economic linkages, and access to markets and/or inputs, all of which can be strengthened through targeted incentives.
- To best promote economic development, an SEZ’s final offerings should align with key economic policy objectives.
Case Studies
- Poland: A True Special Economic Zone (Ernst and Young Global Limited)
- Special Economic Zones in Afghanistan a New Business and Economic Deal for 2020? (Samuel Hall)
- The Implications of Successful SEZs in Northeast Asia: Opportunities for Developing SEZs in Mongolia (Tsolmon Tsagaach)
Key Resources
- Economic Security and Competitiveness: Using Special Economic Zones to Drive Job Creation in MENA (Kurt Dassel, Kim Eckermann)
- Poland: A True Special Economic Zone (Ernst and Young Global Limited)
- The Implications of Successful SEZs in Northeast Asia: Opportunities for Developing SEZs in Mongolia (Tsolmon Tsagaach)
Topic Briefing
Launching an SEZ is a significant undertaking. It requires substantial investments, active participation, and support from the private and public sectors. Various incentives—including tax breaks, inexpensive land, deep discounts on water and electricity, and other subsidies—may be offered to encourage companies to locate in an SEZ. These investments can end up costing more than the development generates in positive returns for the country, so it is crucial to build a strong business case.