Special Economic Zones (SEZs) are turning out to be one of the stiffest challenges for India's economic policy reforms. Since the announcement of SEZ rules on 10 February 2006, these zones have aroused unprecedented controversy. The emotionally charged debate on SEZs has often produced inflexible positions on either side. The unusually strong public reaction has also forced policymakers to revisit several aspects of the policy in recent months. Why are SEZs so controversial? Will they really exacerbate income inequality, endanger food security and worsen regional imbalance? Or will they help Indian industry in taking its final leap onto the global arena? Only time will provide the answers. As the first book on India's SEZs, this volume examines different popular perceptions - both good and bad - surrounding these zones. Apart from the international evidence and the Indian story, the book looks closely at critical issues like financial viability, land requirements, extant rules and the political economy of SEZs. Admitting that the last word on the subject is far from being spoken, the book contends that the SEZ saga will be a test of strength for the country's social and political concensus on its economic policies and future reforms. Introduced by eminent economist Bibek Debroy, this book is a must read.

Industrialization supported by industrial hubs has been widely associated with structural transformation and catch-up. But while the direct economic benefits of industrial hubs are significant, their value lies first and foremost in their contribution as incubators of industrialization, production and technological capability, and innovation. The Oxford Handbook of Industrial Hubs and Economic Development adopts an interdisciplinary approach to examine the conceptual underpinnings, review empirical evidence of regions and economies, and extract pertinent lessons for policy reasearchers and practitioners on the key drivers of success and failure for industrial hubs. This Handbook illustrates the diverse and complex nature of industrial hubs and shows how they promote industrialization, economic structural transformation, and technological catch-up. It explores the implications of emerging issues and trends such as environmental protection and sustainability, technological advancement, shifts in the global economy, and urbanization.

For countries as diverse as China and Mauritius, Special Economic Zones (SEZs) have been a powerful tool to attract foreign investment, promote export-oriented growth, and generate employment; for many others, the results have been less than encouraging. While the benefits and limitations of zones will no doubt continue to be debated, what is clear is that policymakers are increasingly attracted to them as an instrument of trade, investment, industrial, and spatial policy. Since the mid 1980s, the number of newly-established zones has grown rapidly in almost all regions, with dramatic growth in developing countries. In parallel with this growth and in the evolving context of global trade and investment, zones are also undergoing significant change in both their form and function, with traditional export processing zones (EPZs) increasingly giving way to larger and more flexible SEZ models. This new context will bring significant opportunities for developing countries to take advantage of SEZs, but will also raise new challenges to their successful design and implementation. This volume aims to contribute to a better understanding of the role and practice of SEZs in developing countries, in order to better equip policymakers in making effective decisions in planning and implementing SEZ programs. It covers some of the emerging issues and challenges in SEZs including upgrading, regional integration, WTO compliance, innovation, the environment, and gender issues with practical case examples from SEZ programs in developing countries.

"This book, designed for policymakers, academics and researchers, and SEZ program practitioners, provides the first systematic and comprehensive analysis of SEZ programs in Sub-Saharan Africa. It is the result of detailed surveys and case studies conducted during 2009 in ten developing countries, including six in Sub-Saharan Africa. The book provides quantitative evidence of the performance of SEZs, and of the factors which contribute to that performance, highlighting the critical importance not just of the SEZ itself but of the wider national investment climate in which it functions. It also provides a comprehensive guide to the key policy questions that confront governments establishing SEZ programs, including: if and when to launch an SEZ program, what form of SEZ is most appropriate, and how to go about implementing it. Among the most important findings from the study that is stressed in the book is the shift from traditional enclave models of zones to SEZs that are integrated ? with national trade and industrial strategies, with core trade and social infrastructure, with domestic suppliers, and with local labor markets.Although the book focuses primarily on the experience of Sub-Saharan Africa, its lessons will be applicable to developing countries around the world."

Growth‐enhancing structural change—a relocation of labour from low‐ to high‐productivity sectors—is increasingly perceived as inextricably linked with the sustainable development agenda. In the pursuit of structural change, policymakers have pinned their hopes on targeted policy tools such as special economic zones (SEZs). These geographically demarcated spaces designed to attract investment with a wide set of advantages have become de rigueur; however, a systematic evaluation of evidence‐informed policymaking is scarce due to conceptual and practical challenges. This book fills that gap and shows that SEZs are no ‘shortcut’ to economic development; their success in driving economic transformation depends on the complex interplay of sociopolitical, economic and strategic factors. This book contributes to the burgeoning literature on SEZs by providing the first systematic evaluation of the SEZ policy. It adopts the ‘policy cycle approach’ to organise policy evaluation into three hierarchical layers: input evaluation (agenda building), output evaluation (policy designs) and outcome evaluation (immediate effects of SEZs on firms’ behaviour and performance) with special reference to South Asian countries. The strategy is to bring together the findings of microeconomic evaluations to draw macro inferences on the contribution of SEZs to the broader objectives of structural transformation and competitiveness. Part I of the book delves into development challenges facing the region, lays out theoretical foundations underlying the relevance of SEZs in addressing them and examines the relevance of SEZs in the context of South Asia. Part II evaluates the policy first at systemic level to gauge whether and how the policy is rooted in broader development goals and then at the design level to examine the fit between the policy goals and designs. Part III presents a counterfactual evaluation of the impact of SEZs on investment climate; export competitiveness of firms; technology and innovation; and knowledge linkages of SEZ firms with the wider economy. The final chapter concludes by discussing the emerging challenges and the way forward. This will be a useful reference for academics, researchers, policymakers and professionals in international trade and business, public policy, industrial economics and regional integration.

Special economic zones (SEZs) have become a permanent feature of the world trade scene. This book, the first to provide a critical and comprehensive analysis of SEZs covering a wide spectrum of countries and regions, shows how SEZs, albeit established at the domestic level by different countries, raise multiple legal issues under international economic law. This first-rate book is the product of the Asia FDI Forum IV held in Hong Kong in 2018. Thoroughly exploring the development of the SEZ phenomenon and its players, the contributing authors (all leading economic law experts) review the issues raised by SEZs in the context of international trade law, international investment law and investment arbitration. They identify the extent to which SEZs have been coherent in their design and policymaking, in particular with regard to domestic law reforms. They address such aspects (both core themes and specific examples) as the following: investment protection in China’s SEZs; state-owned enterprises regulation; dispute settlement; under what circumstances incentives available in SEZs count as export subsidies prohibited under World Trade Organization (WTO) rules; compliance with internal market rules in European Union (EU) free zones; local populations as victims of land expropriation; Brazil’s Manaus Free Trade Zone; India’s experience with multiple SEZs; the administrative approval system in the Shanghai Free Trade Zone; economic corridors and transit routes as SEZs; ‘refugee cities’: SEZs for migrants; how China’s Supreme People’s Court serves national strategy; how foreign investors challenge free-zone regimes; impacts of the establishment of SEZs on tax revenues; SEZs and labour migration; and management models. The chapters also include insights into the new emerging generation of international investment agreements; WTO accession, transparency, and case law materials clarifying specific trade issues associated with SEZs; and new rules to protect the environment and labour rights, as well as analysis of crucially significant cases such as Goetz v. The Republic of Burundi, Lee Jong Baek v. Kyrgyzstan and Ampal-American and Others v. Egypt. With its critical and comprehensive analysis of the dynamic SEZ phenomenon across legal, economic, investment, regulatory and policy matrices – including a thorough analysis of the success factors and required policies for SEZs – this book takes a giant step towards answering the question whether SEZs fundamentally contradict norms of international law or whether SEZs have to be considered as laboratories which facilitate the implementation of international economic policies. Its careful examination of theory and practice and its approach to lessons learned from case studies will reward trade and investment officials, policymakers, diplomats, economists, lawyers, think tanks, business leaders and others interested in this ever more important area of law and economics.

This book examines India’s ten years of experience developing Special Economic Zones (SEZs) and the performance of SEZs in the context of India’s growing international engagement, its endeavours to attract domestic and foreign investment in manufacturing and services and its aim to increase and diversify exports of goods and services. SEZs are industrial enclaves/clusters within a country that receive certain incentives and business facilitation benefits that are not generally available to the rest of the country. To facilitate private and foreign investment in SEZs, India introduced the SEZ policy in 2000, which was followed by the SEZ Act in 2005. After ten years under the Act, India now has one of the largest number of approved SEZs in the world and its SEZ policy remains heatedly debated, with a number of studies arguing both for and against it. Given this background, the book also identifies the challenges faced by SEZs in India and offers policy recommendations on how to make the SEZs an engine for India’s economic growth and development that can more effectively link the country’s manufacturing and services sectors to global value chains.

During the 1990s, the governments of South Asian countries acted as ‘facilitators’ to attract FDI. As a result, the inflow of FDI increased. However, to become an attractive FDI destination as China, Singapore, or Brazil, South Asia has to improve the local conditions of doing business. This book, based on research that blends theory, empirical evidence, and policy, asks and attempts to answer a few core questions relevant to FDI policy in South Asian countries: Which major reforms have succeeded? What are the factors that influence FDI inflows? What has been the impact of FDI on macroeconomic performance? Which policy priorities/reforms needed to boost FDI are pending? These questions and answers should interest policy makers, academics, and all those interested in FDI in the South Asian region and in India, Pakistan, Bangladesh, Sri Lanka and Pakistan.

China's Soft Power Diplomacy: Myth or Reality? examines the Chinese version of soft power both in conceptual and operational terms, and explores its myriad implications for India, in particular, and South Asia in general. The book investigates how the institutionalization of cultural soft power would help China project its image as a benign and responsible stakeholder in order to reshape the current international system with its notion of “harmonious world order,” based on Chinese characteristics. This book traces the origin of China’s engagement with South Asian states from historical, political, economic, and security perspectives in order to better understand the dynamics of its South Asia policy. It illuminates the core reasons to explain why China’s soft power initiatives in South Asia are least appealing and convincing to India while they are welcomed by smaller nations of the region. More pertinently, the book addresses complexities and nuances of China’s soft power instruments given the psycho-cultural and geopsychological peculiarities of the South Asian region. For this, it focuses on how the Sino-Pakistan axis constitutes a potential challenge to India’s leadership role and influence in South Asia.