SEZs and Economic Transformation: Towards a Developmental Approach
21 Pages Posted: 11 Jun 2020
Date Written: September 2, 2019
This study presents a three-pillared analytical framework for the success factors and development outcomes of special economic zones (SEZs). The core argument is that countries that adopt a well-structured approach towards SEZs that they can align with the broader development strategy, executive effectively, and continuously evaluate and manoeuvre over time, are more successful in achieving SEZ-led economic transformation than others. This requires strategic bureaucratic competencies to make the right choices and set clear strategic directions; strategic bureaucratic learning to dynamically and interactively engage in adjusting the strategies when needed; and strategic bureaucratic strengths to implement the strategy effectively. These elements in turn need an effective political leadership with a strong development focus that can energise and motivate bureaucracies. The study revisits the experience of successful, not-so-successful and least successful countries across the globe within this framework and concludes by raising some pertinent concerns about SEZ-led development strategy that emerge from the analysis.
Keywords: Special economic zones, economic transformation, conceptual framework, political will, bureaucratic capabilities, developmental state
JEL Classification: E02, O1, O2, F1
Suggested Citation: Suggested Citation