Africa-Asia Exchange on Special Economic Zones and Competitive Clusters

May 12, 2009 ? Government officials from 12 African countries onTuesday wrapped-up an Africa-Asia experience- and knowledge-sharing study tripto three Asian countries co-facilitated by the World Bank.The two-week trip (May 1-12, 2009) provided learning opportunities focusing onhow three East Asian countries ? Malaysia, Singapore and China ? havesuccessfully adopted Special Economic Zones and developed Competitive Clustersto expand exports and trade, boost foreign direct investments, and developglobally competitive industries.African participants in the program ? including two ministers ? are activelyinvolved in planning and implementation of various Special Economic Zone (SEZ)models including industrial zones and growth poles as well as embarking onstrategies for developing industry clusters.This study tour follows last year?s signing of a Memorandum of Understanding(MOU) between the World Bank and Singapore. Similar to the work the World Bankis doing with China and Malaysia, the MOU with Singapore aims to leverage thecountry?s expertise in many areas, including the development of Special EconomicZones with the World Bank Group?s global development knowledge and operationalexperience for the benefit of developing countries worldwide.?We used the trip to help participants find practical solutions and identify the?dos? and ?don?ts? in putting in place efficient and attractive legal,regulatory and fiscal regimes when they set up SEZs; in optimizing institutionaland administrative structures; and in enhancing the role of the private sector,?said Ganesh Rasagam, the Task Team Leader for this program at the World Bank.According to Rasagam, some of the key challenges that have emerged in Africancountries where SEZs have been tried include clarity on the economic rationale,modalities and policy framework for successful design and implementation ofzones, physical planning, land administration and safeguard aspects, among others.