It worked in China, so why not in Africa? The political economy challenge of Special Economic Zones

Abstract

Typescript prepared by Janis Vehmaan-Kreula at UNU-WIDER. UNU-WIDER also acknowledges core financial support to UNU-WIDER's work programme from the governments of Denmark, Finland, Sweden, and the United Kingdom.The World Institute for Development Economics Research (WIDER) was established by the United Nations University (UNU) as its first research and training centre and started work in Helsinki, Finland in 1985. The Institute undertakes applied research and policy analysis on structural changes affecting the developing and transitional economies, provides a forum for the advocacy of policies leading to robust, equitable and environmentally sustainable growth, and promotes capacity strengthening and training in the field of economic and social policy-making. Work is carried out by staff researchers and visiting scholars in Helsinki and through networks of collaborating scholars and institutions around the world.

Fast tracking the SADC integration agenda to unlock regional collaboration gains along growth corridors in Southern Africa

“…The conceptualization of growth corridors emanated from the success of special economic zones, which have played a catalytic role in growth and structural change around the world (Farole and Moberg 2014). Increased transport and logistic efficiency due to an adequate development of growth corridors can have substantial economic benefits for the region concerned.…”

Industrial clusters: The case for Special Economic Zones in Africa

“…Africa has been a relative latecomer to the use of SEZs, and part of the reason for the failure of African SEZs may simply be poor timing. The rapid growth and contribution of economic zones to export-led growth in East Asia was in part driven by an unprecedented era of globalization (Farole and Moburg 2014). Because most African countries launched their programmes later, they faced a more competitive environment, especially after the expiration of the MFA.…”

“…Foremost among these is the role of leadership. One of the most important success factors for SEZ programmes in East Asia was strong support and active commitment to the programme at the highest levels of political leadership (Farole and Moburg 2014). In China and Viet Nam for example the senior government and party leadership were publicly committed to the success of SEZs.…”

What are the Key Location Factors for Firms in Special Economic Zones? Evidence from Poland

“…Over the decades, zonal policies have pursued the goals of economic growth and development in many countries. In some of them, they effectively contributed to the promotion of industrialisation (Zeng, 2015;, the attraction of foreign capital and job creation (Akinci and Crittle, 2008;Ambroziak, 2016;Capik, 2013;Farole, 2011), as well as played a positive role of a catalyst for structural transformations (Ambroziak, 2003;Farole and Moberg, 2014;Hsu and Chu, 2016;Yeung et al, 2009;Zacharias and Tang, 2010), or integration with global trade (Farole, 2011). In others, however, they failed to achieve their goals (Farole and Kweka, 2011), did not create an attractive business environment that would make it competitive for foreign capital, and as a result, did not differ from the rest of the economy (Bernstein et al, 2012;Farole, 2010).…”