Success Factors For Implementation
At a Glance
- Even when the SEZ concept and design are sensible, the team, as well as the associated administrative, management, and oversight systems will have a large effect on the ability of an SEZ to meet its goals.
- Staff quality and retention are key to the success of any zone.
- SEZs need to be able to weather changes in economic or financial conditions and budget availability, requiring flexibility and resourcefulness to find new revenue streams and adjust marketing strategies.
- Special Economic Zones: Progress, Emerging Challenges, and Future Directions (Thomas Farole, Gokhan Akinci)
- Special Economic Zones: An Operational Review of Their Impacts (World Bank Group)
- An Overview of Six Economic Zones in Nigeria: Challenges and Opportunities (World Bank)
- Special Economic Zones: A Guidance Framework for Policymaking (Claude Baissac, Thomas Farole, Jean-Paul Gauthier)
This resource is designed to support the early-stage policymaking and planning process, and explores what type of SEZ model may be most ...
This resource offers an overview of the efficacy and overall economic impact of Special Economic Zones (SEZs) though an analysis of ...
This study evaluates the overall economic performance of zones and analyzes key development trends in terms of zone configuration, ...
SEZs are difficult to get right, even when the concept and design are sensible. The team, as well as the administrative, management, and oversight systems of the SEZ will have a large effect on the effectiveness of an SEZ in meeting its goals.
Many SEZs have looked promising on paper but failed to deliver as the stakeholders lacked the ability to implement policies, provide oversight, and monitor outcomes. Staff quality and retention will be key to the success of the zone. In addition, many have not succeeded in creating the necessary institutional cooperation systems, including intergovernmental, regulators, and utilities. This failure reduces the value proposition of the SEZ, as investors now arguably face the same bureaucratic constraints as the wider economy, but often with an additional layer of delays and management. SEZs often also need to weather changes in economic or financial conditions and budget availability, requiring flexibility and resourcefulness to find new revenue streams and adjust marketing strategies.
SEZs are, in part, an acknowledgment of constraints facing the wider economy. The scale of these constraints requires a smaller, more focused implementation in economic zones. However, it is important to note that SEZs cannot adequately make-up for these constraints and therefore it is critical that wider reforms still take place. This is also necessary to avoid creating a permanent enclave and, with it, path dependence and stagnation in the zone.