Special Economic Zone
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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.
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In the People's Republic of China
Main articles: Special Economic Zones In 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":
- Constructions primarily relies on attracting and utilizing foreign capitals
- 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 PRC's SEZs
PRC's SEZ's are located in:
- Guangdong Province: Shenzhen, Zhuhai and Shantou
- Fujian Province: Xiamen
- Hainan Province (whole province)
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
- Kandla and Surat (Gujarat)
- Cochin (Kerala)
- Santa Cruz (Mumbai–Maharashtra)
- Falta (West Bengal)
- Chennai (Tamil Nadu)
- Visakhapatnam (Andhra Pradesh)
- Noida (Uttar Pradesh)
In Kazakhstan
External Links
- SEZ India (http://www.sezindia.nic.in/)
de:Sonderwirtschaftszone ja:経済特区 pl:Specjalna strefa ekonomiczna zh:经济特区