ABSTRACT
Throughout the decades since the first modern SEZ was introduced, several forces have been pushing governments away from older zone models and toward models that seem to incorporate many political economy insights that numerous failed SEZs have provided. Regardless of what kind of jobs a government seeks to foster through SEZ implementation, industrial parks where businesses enjoy fiscal benefits, will not be able to give jobs to massive amounts of low-skilled people. Today, the WTO is posing another threat to the traditional export processing zone (EPZ) model. The WTO ban on export requirements is inevitably stirring up the world of SEZs. This induces hope for a world free of the political economy problems plaguing SEZs today, and where SEZs can play an increasingly important role in economic development. The political economy of SEZs teaches many lessons of how zone schemes can go wrong. If done right, tomorrow's SEZs offer the chance to improve the lives of millions of people.
