Special economic zones

Special economic zones (SEZs) – geographically delimited areas within which governments facilitate industrial activity through fiscal and regulatory incentives and infrastructure support – are widely used across most developing and many developed economies. Although the performance of many zones remains below expectations, failing either to attract significant investment or to generate economic impact beyond their confines, new zones continue to be developed, as governments increasingly compete for internationally mobile industrial activity. Policymakers face not only the traditional challenges of making SEZs succeed, including the need for adequate strategic focus, regulatory and governance models, and investment promotion tools, but also new challenges brought about by the sustainable development imperative, the new industrial revolution and changing patterns of international production.

Sustainable Development Goals:

No Poverty

Decent Work and Economic Growth

Industry, Innovation and Infrastructure