Special Economic Zones in the OIC Region:
Learning from Experience
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programme. Early decisions on the appropriateness of SEZ programmes is critical to ensure that
political support remains constant throughout the development programme.
Observation of the performance and success of SEZs within OIC Member Countries and
internationally suggests that SEZs tend to be more successful where they are programmed and
designed as core components of a national economic strategy. This requires a clear indication
and quantification of the specific economic strategy priorities that are best served nationally
and regionally by SEZs, with an evidence-based case as to why SEZs constitute an appropriate
form of policy intervention. Furthermore, definition of the specific performance outcomes and
metrics to be addressed by SEZs should also be clearly articulated.
The economic rationale for the development of an SEZ programme also needs to be grounded in
an appreciation of the existing factors constraining economic performance. Where key
constraints relate to skills, wages and productivity or structural issues such as geography or
scale then SEZs should not be considered the primary policy tool for intervention.
Robust Economic Rationale
The development SEZ programmes should be underpinned by a robust economic rationale
which clearly defines both the economic objectives and targets of the proposed programme
Extensive analysis of the country’s economic performance, constraints to growth and
investment climate should be undertaken to determine whether the development of an SEZ
programme is a suitable policy tool.
Selection of SEZ Model
It is important to determine the right type of SEZ development model (e.g. CFZ, EPZ, FTZ or wide
area SEZs and Freeports). The type of SEZ should be aligned to the policy objectives and in some
instances could include innovative configurations in order to present the most attractive value
proposition to the market. This again, should be informed by a robust economic analysis of
existing constraints and barriers to growth and align with national/regional policy targets and
objectives.
Alignment with National Economic Strategy
The implementation of SEZ programmes should be considered with regards to a national
economic strategy which identifies howSEZs will link to certain parts of the economy. Successful
SEZs are firmly entrenched in national economic strategies with clear definition of their
potential role in driving economic change and in achieving defined economic priorities.