Special Economic Zone

Encyclopedia : S : SP : SPE : Special Economic Zone

A Special Economic Zone (SEZ) is a geographical region that has economic laws different from a country's typical economic laws. Usually the goal is an increase in foreign investment. Special Economic Zones have been established in several countries, including the People's Republic of China, India, Jordan, Poland, Kazakhstan, the Philippines and Russia. North Korea has also attempted this to a degree.

Contents

1 In the People's Republic of China

1.1 List of SEZs in the People's Republic of China

2 In India
3 In Kazakhstan
4 In North Korea
5 External links

In the People's Republic of China

''Main articles: Special Economic Zone of the People's Republic of China

The word "special" mainly means special economic systems and policies. In the People's Republic of China, the central government gives SEZs special policies and flexible measures, allowing SEZs to utilize a special economic management system.

Special tax incentives for foreign investments in the SEZs.
Greater independence on international trade activities.
Economic characteristics are represented as "4 principles":
#Construction primarily relies on attracting and utilising foreign capital
#Primary economic forms are sino-foreign joint ventures and partnerships as well as wholly foreign-owned enterprises
#Products are primarily export-oriented
#Economic activities are primarily driven by market

SEZs are listed separately in the national planning (including financial planning) and have province-level authority on economic administration. SEZs local congress and government have legislation authority.

List of SEZs in the People's Republic of China

Guangdong Province: Shenzhen, Zhuhai and Shantou
Fujian Province: Xiamen
Hainan Province (whole province)
Shanghai Province: Pudong
Liaoning Province: Dalian

In India

Considering the need to enhance foreign investment and promote exports from the country and realising the need that level playing field must be made available to the domestic enterprises and manufacturers to be competitive globally, The Government of India had in April 2000 announced the introduction of Special Economic Zones policy in the country, deemed to be foreign territory for the purposes of trade operations, duties and tariffs. The Special Economic Zones in India closely follow the PRC model.

List of India's SEZs

The policy provides for setting up of SEZ's in the public, private, joint sector or by State Governments. It was also envisaged that some of the existing Export Processing Zones would be converted into Special Economic Zones. Accordingly, the Government has converted Export Processing zones located at

Currently, 36 SEZs have been approved and all the 8 Export Processing Zones (EPZs) have been converted into SEZs. These are fully functional. In addition 3 new SEZs approved for establishment at Indore, Jaipur and Kolkata have recently commenced operations. Also, approval has been given for setting up of 42 Special Economic Zones in various parts of the country in the private/joint sectors or by the State Government.

In Kazakhstan

Astana

In North Korea

The Rajin-Sonbong Economic Special Zone was established under a UN economic development programme in 1994. Located on the bank of the Tumen River, the zone borders on the Yanbian Korean Autonomous Prefecture (or, Yeonbyeon in Korean) of the People's Republic of China, as well as Russia. In 2000 the name of the area was shortened to Rason and became separate from the North Hamgyeong Province.

External links

[SEZ India]
[Haryana Technology Park (HTP)] - An approved SEZ located 3 kilometers (1.8 miles) from the Delhi - Faridabad border
[World Bank] archived online discussion: "Do the Benefits of Special Economic Zones Outweigh Their Costs?"

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