- Attracting Foreign Direct Investment (FDI)
- Generate Employment Opportunities
- Experimental Incubation for New Policies and Systems
- Supporting a Wider Economic Reform Strategy
Many scholars and papers articulate a myriad of objectives for creating an economic zone.
As an extraction of many years of experience and interaction with many practitioners, there are four key rationales:
- Attracting Foreign Direct Investment (FDI)
- Generate Employment Opportunities
- Supporting a Wider Economic Reform Strategy
- Experimental Incubation for New Policies and Systems
While attracting foreign direct investment and generating employment opportunities are obvious, logical and important reasons. What sometimes are overlooked are the other two rationales; supporting a wider economic reform and experimental incubation for new polices and systems.
Because economic zones tend to be developed within an enclave outside the jurisdiction of main economy, it has a propensity and a safer environment to experiment with policies and new systems. Instead of issuing a laminated paper for a license to issue ID card for license. Instead of issue a physical license to issue and electronic license. These systems and polices, once proven successful can be embraced by the wider economy with greater comfort.