This book provides a guide to the challenges of special economic zones. Focusing on Africa, while also discussing China, Taiwan, Dominican Republic, Malaysia, and South Korea, the impact on economic development of special economic zones is analysed to highlight the successes and failures of these zones. New emerging issues, such as the sustainable development goals and the fourth industrial revolution, are presented as factors that need to be addressed in order for special economic zones to be productive in Africa. The role of foreign direct investments, job creation, industrialization, and regulation is also discussed.
Special Economic Zones: Economic Development in Africa aims to set out an empirical framework on how to create effective special economic zones. It will be relevant to researchers and policymakers interested in African and development economics.
Author(s): Gift Mugano
Publisher: Palgrave Macmillan
Year: 2021
Language: English
Pages: 246
City: Cham
Foreword
Acknowledgements
Contents
About the Author, Editors and Reviewers
List of Tables
List of Boxes
Part I: Introduction
Chapter 1: Special Economic Zones Unpacked
1.1 Introduction
1.2 The Context of Special Economic Zones
1.3 The Rationale of Special Economic Zones
1.4 Overview of Global Special Economic Zones
Asia
China
Latin America and the Caribbean
Africa
Transition Economies
Developed Economies
1.5 Conclusion
References
Chapter 2: Overview of Special Economic Zones in Africa
2.1 Introduction
2.2 An Overview of Special Economic Zones in Africa
Special Economic Zones in Existence and Incentives Offered
Activities in Special Economic Zones
Cooperation Between China and Africa on Special Economic Zones in Africa
China’s Role in Special Economic Zones in Africa: Case Studies
Ethiopia
Bole Lemi Industrial Zone
Eastern Industrial Zone
Nigeria
Lekki Free Zone
Lagos Free Trade Zone
Zambia
Lusaka South Multi-Facility Economic Zone
Zambia–China Economic and Trade Cooperation Zone
Chambishi Multi-Facility Economic Zone
Lusaka East Multi-Facility Economic Zone
2.3 Conclusion
Annexure 2.1: SEZs in Sub-Saharan Africa
References
Part II: Role of Governments and Policy Compatibility
Chapter 3: Regulatory and Institutional Framework of Special Economic Zones
3.1 Introduction
3.2 The National Regulatory Framework
Overall Regulatory Framework
The Special Economic Zones Laws
Content of the Special Economic Zones Laws
Definition of Special Economic Zones
Objectives of Special Economic Zones and Targeted Sectors
Investment Attraction Tools in Special Economic Zones Laws
Establishment and Operational Requirements for Special Economic Zone Users
3.3 Institutional Set-up of Special Economic Zones
Key Stakeholders in Special Economic Zones
Institutional Models in Establishing Special Economic Zones
3.4 International Regulations and Special Economic Zones
Nexus between International Investment Agreements (IIA) and Special Economic Zones
Nexus between World Trade Organization and Special Economic Zones
Nexus between Regional Trade Agreements and Special Economic Zones
3.5 Conclusion
References
Chapter 4: Guidelines for Special Economic Zones Development and Collaboration: Evidence from Asia
4.1 Introduction
4.2 Guidelines for Special Economic Zones Development and Collaboration
Promotion of Clear Development Strategy
Specific Binding Constraints That Must Be Addressed by the Zone
Set Measurable and Time-Bound Objectives
Special Economic Zones as a Framework for Testing and Catalysing Economic Reforms
Foster Coherence Between Investment Policy Framework and Special Economic Zones
Promote Linkages Between Investors and the Domestic Economy
Ensure Coherence and Cost-Efficiency of Incentives
Engaging Anchor Investors and Other Stakeholders in the Design Phase
Clarification and Separation of Roles and Responsibilities of Institutions
Synchronising Legislation with Institutions and Regulations
Ensure Compliance of Infrastructure Investors in SEZs Domestic Regulations with Regional Trade Agreements
Ensure Measurable and Sustainable Monitoring and Evaluation of the Zone Programme
4.3 Conclusion
References
Chapter 5: The Nexus Between Investment Policy Framework and Sustainable Development
5.1 Introduction
5.2 Embedding Investment Policy in Development Strategy
Defining the Role of Public, Private, Domestic and Foreign Direct Investment
Harnessing Investment for Productive Capacity Building and Enhancing International Competitiveness
Human Resources and Skills Development
Technology and Technical Know-How
Infrastructure
Enterprise Development
5.3 Designing Policies for Responsible Investment and Sustainable Development
5.4 Implementation and Institutional Mechanisms for Policy Effectiveness
5.5 National Policy Guidelines
5.6 Conclusion
References
Part III: Impacts of Special Economic Zones
Chapter 6: The Impact of Special Economic Zones
6.1 Introduction
6.2 Conceptual Framework of a Sustainable Development Impact Assessment of Special Economic Zones
6.3 Direct and Indirect Economic Contributions of Special Economic Zones
Investment Attraction
Export Generation and Diversification
Direct and Indirect Employment Creation
Overall Economic Growth Impact
6.4 The Nexus Between Special Economic Zones Costs and Revenues
6.5 Dynamic Zone Contributions: Industrial Development and Upgrading
6.6 Social and Environmental Impacts
6.7 Conclusion
References
Chapter 7: Outcomes in Special Economic Zones in Africa
7.1 Introduction
7.2 Assessment of the Performance of Special Economic Zones in Africa
Static Economic Outcomes in African Zones
Impact of Special Economic Zones on Investment
Impact of Special Economic Zones on Exports
Impact of Special Economic Zones on Employment
Dynamic Outcomes of Special Economic Zones in Africa
Socio-economic Outcomes in African Zones
Quality of Employment and Protection of Workers’ Rights
Gender-Differentiated Impacts
7.3 Conclusion
References
Part IV: Critical Factors for Special Economic Zones’ Success and Failure
Chapter 8: Critical Success Factors of Special Economic Zones
8.1 Introduction
8.2 The Context and the Framework for Sustainable Special Economic Zone Programmes
8.3 Strategies and Policy Consideration for Effective Implementation of Zones
Value Proposition
Infrastructure and Services Are Key for Zone Success
Experimentation and a Gradual Approach
Government Commitment
Strategic Sector and Firm Targeting
Pursuit of Linkages and Spillovers
8.4 Conclusion
References
Chapter 9: Special Economic Zones: Showcasing Success and Failures
9.1 Introduction
9.2 Special Economic Zones and Economic Transformation
9.3 The Integrated Institutional Framework of Special Economic Zones: Three Pillars
Aligning Special Economic Zones with National Development Strategy
Understanding the Rationale of Special Economic Zones
Aligning Special Economic Zones with National Development Strategies
Strategic Dynamism
Strategic Implementation
9.4 The Integrated Institutional Framework and the Global Experience
Most Successful Countries
Not So Successful Countries
Lack of Integration Between Development Planning and SEZs
Lack of Dynamism in SEZ Approach
Implementation
Least Successful Countries
9.5 Conclusion
References
Part V: What Can Africa Learn from China and Other Asian Countries About Special Economic Zones
Chapter 10: Chinese Experiences on Special Economic Zones
10.1 Introduction
10.2 Overview of Special Economic Zones in China
High-Tech Industrial Development Zones
Free Trade Zones
Export-Processing Zones
10.3 Contributions of Special Economic Zones to China’s Development
Contribution to Gross Domestic Product
Contribution to Foreign Investment
Contribution to Employment
Contribution to High Technology
10.4 Major Factors for Success and Lessons Learned
Strong Commitment to Reform and Pragmatism from Top Leadership
Preferential Policies and Institutional Autonomy
Strong Support and Proactive Participation of Governments
Land Reforms
Foreign Direct Investment and the Chinese Diaspora
Technology Learning, Innovation, Upgrading and Strong Links with the Domestic Economy
Innovative Cultures
Clear Objectives, Benchmarks and Intense Competition
Location Advantages
10.5 Conclusion
References
Part VI: Conclusions and Way Forward
Chapter 11: Towards a New Generation of Special Economic Zones
11.1 Introduction
11.2 Lessons Learned from Special Economic Zones Experience
Special Economic Zone Programme Design
Special Economic Zone Operations
Optimising Development Impact
Systemic and Strategic Considerations
11.3 A Forward-Looking Perspective
11.4 Sustainable Development Goals Model Zones
11.5 Conclusion
References
Index
