Economic Zones: Learning from Global Experience

 New Delhi, India
April 29-30, 2004

Key Conclusions

A key point that emerged during the workshop was that strong support is needed from governments in establishing and increasing the probability of success of the economic zones.  There was some interesting debate on the exact nature of the role of government in establishing economic zones, but it was clear that the legal, regulatory and institutional framework plays a crucial role and should be established first at the national government level.

Secondly, there are different forms of ownership of economic zones around the world, ranging from public ownership, as in the case of Jebel Ali in Dubai, to entirely private construction and management, as in the case of Al-Tajamouat Industrial City in Jordan. A crucial element going forward is the need to ensure that the best practices established in the zones can be extended to the benefit of the economy as a whole.

Thirdly,  a clear conclusion during the course of deliberations was that  strong developers are required to finance the creation of SEZs, but that financing of economic zones, like all project finance, requires careful structuring to allocate risks appropriately. Risk mitigation is also important, including phased build-out of infrastructure, and involving public agencies in financing to ensure, and to signal, government commitment. One way of achieving this may be through a public-private partnership.

Additionally, many speakers illustrated the importance on building on what already exists whether in terms of infrastructure, existing export-oriented industries, or existing zones in some form, rather than starting entirely from scratch. This would serve as a lesson of experience in the planning of new zones.