Special Economic Zones and Industrial Parks in South Asia : An Assessment of Their Regulatory Structures
This paper reviews the policies and regulations for special economic zones and other spatial development modalities in the countries within proximity of the Eastern Corridor in South Asia, and it assesses whether those policies and regulations are...
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Language: | English |
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World Bank, Washington, DC
2021
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Online Access: | http://documents.worldbank.org/curated/undefined/534711636533994012/Special-Economic-Zones-and-Industrial-Parks-in-South-Asia-An-Assessment-of-Their-Regulatory-Structures http://hdl.handle.net/10986/36585 |
Summary: | This paper reviews the policies and
regulations for special economic zones and other spatial
development modalities in the countries within proximity of
the Eastern Corridor in South Asia, and it assesses whether
those policies and regulations are effectively designed. The
assessment finds mixed results. On the positive side,
governments in these countries exhibit a strong political
commitment to the zones’ success, providing them with
dedicated policies of both fiscal incentives and regulatory
concessions, combined with administrative simplification to
help zone developers and tenant enterprises. However, these
arrangements include some notable shortfalls. For example,
some incentives are inconsistent with the zone objectives,
violate some international regulations, or miss necessary
business facilitation measures. Moreover, there is no
mechanism to evaluate the effectiveness and cost-efficiency
of different incentives. Zone tenancy requirements are not
always well specified, feasible, or consistent with zone
objectives. As for the regulatory and institutional
structures of zone programs, there are some common
shortfalls, especially in terms of (a) clarity of zone
objectives, (b) the roles of different agents, (c) the
autonomy and inclusivity of those agents, and (d) the
agents’ authority to carry out their responsibilities, and
there are some shortfalls in the resources that agents need
to manage operations effectively. To maximize the benefits
from these zones, governments of the region could adopt
reforms to ensure that incentives and tenancy requirements
are aligned with zone objectives and that regulatory
frameworks are clear, fair, and effective. |
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