Mehmood Hussain and Sumara Mehmood
Dr Mehmood Hussain is Assistant Professor at the Department of International Relations, Women University of Azad Jammu and Kashmir, Bagh.
Ms Sumara Mehmood is a PhD Candidate in Education Leadership and Management at Faculty of Education, Southwest University China.
DOI: http://DOI Number
Keywords: China, ‘go global’(Zou Chuqu), Chinese Special Economic Zones (SEZs) model, Challenges, management capability, coordination, infrastructure, Industrial Parks (IPs(
Abstract
China introduced the policy of ‘go global’ (Zou Chuqu), in the 1990s to explore the overseas markets for building global brands. The strategic purpose for the establishment of industrial and trade zones abroad was to increase demand for Chinese manufactured machinery, boost export-oriented growth, restructure domestic value chain, and work overseas in joint ventures and transfer of the successful Chinese Special Economic Zones (SEZs) model. In 2006, the Ministry of Commerce of China (MOFCOM) unveiled its intentions to build more than fifty SEZs across the globe. Consequently, by 2010 more than 200 Chinese companies invested $700 million in the development of 16 SEZs and generated $2.5 billion dollars in revenue. Simultaneously, 10 out of 16 zones made remarkable progress in attracting investments. But Chinese overseas SEZs face four key challenges: First, lack of management capability of zone developers. Second, difficulties in coordination with host governments. Third, the lack of necessary offsite infrastructure. And fourth, financing difficulties faced by the developers. The paper, based on past Chinese experience, assesses the opportunities and challenges for SEZs under CPEC by answering the following two main questions: Will the SEZs and Industrial Parks (IPs) under CPEC face challenges similar to Chinese initiatives globally? What will be the major opportunities and challenges to SEZs and IPs in Pakistan? The paper argues that though the SEZs and IPs have a huge potential to transform the economy of Pakistan, they will fall in various administrative, financial, and legal traps, which will hinder the pace of their development.
First Published
March 25, 2018
How to Cite
Mehmood Hussain and SumaraMehmood, “Special Economic Zones (SEZs) and Industrial Parks (IPs) under CPEC:
Opportunities and Challenges,”
Regional Studies 36, no.2
(Spring-Summer 2018): 88-124,
https://regionalstudies.com.pk/wp/article/special-economic-zones-sezs-and-industrial-parks-ips-under-cpec-opportunities-and-challenges/
Issue
Volume 36, Issue 2