Special econimic zones as a tool for structural transformation



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Geographic areas of a country or region set aside for designated economic and industrial activities; which are supported through special measures.

SEZ FRAMEWORK


Special Economic Zones
Sectoral development dimension
Regional development dimension
Land development dimension
Industrial capabilities
Regional Innovation Systems
Administrative processes/approvals
Determine or prioritise:
  • Industries
  • Value chains
  • Clusters
  • Products

Support system:
  • Resources
  • Education
  • Infrastructure
  • Research/Innovation
  • Health/Housing
  • EIAs
  • Licences/Permits
  • Taxes
  • Registration
  • Visas

FDI
Value-Added Exports
Growth
Jobs
New Industrial Know-how
Special Support Measures: Tax Financial Non-financial Incentives across all spheres of government.
Innovation

COMPONENTS OF AN SEZ


SEZ
Industrial
Production
Component
Industrial
Support
System
Component
  • Education: Universities, Vocational training
  • Infrastructure
  • Research and development
  • Human settlements
  • Health facilities
  • Logistics
  • Incubation
  • Industrial Development Zones
  • Export Processing Zones
  • Sector Development Zones
  • Enterprise Development Zones
  • Science and Technology Parks
  • Corridor development Zones

UNDERSTANDING REGIONS AT SUBNATIONAL LEVEL


REGIONS at Subnational level
Leading
Regions
Inter-mediate
Regions
Under-developed
Regions
Characteristics
  • Competitive industries/firms
  • Infrastructure
  • Education
  • Innovation
  • Poverty nodes

Needs
  • Industrial upgrading
  • Competitiveness
  • Skills
  • Diversification
  • Advanced industries
  • Inclusion

Strategy
Characteristics
  • Strong industrial base
  • Some educational institutions
  • Social infrastructure
  • Poverty nodes

Needs
  • Industrial upgrading
  • Competitiveness
  • Skills
  • Diversification
  • Advanced industries
  • Inclusion

Strategy
Characteristics
  • No infrastructure
  • No education inst.
  • No research inst.
  • Natural resources
  • Poverty

Needs
  • Infrastructure
  • Tertiary education
  • Housing
  • Health facilities

Strategy

POLICY APPROACH

  • Greater focus on desired industrial capabilities – clarifying which sectors, industries, value chains, clusters and products are strategic and capable of anchoring broader and long-term industrial development,
  • Understanding and creating responsive administrative arrangements to support investments and development,
  • Long-term planning, coordinated across and between spheres,
  • Greater focus on host areas rather than fenced-in areas,
  • Special support measures to make those areas special,
  • Flexible and broader design that caters for diverse regional needs,
  • Comprehensive support beyond just world-class industrial infrastructure.

REQUIRED SUPPORT SYSTEM


Industrial Infrastructure

Education and Training


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