China-associated Special Economic Zones in the Global South

International

China-associated Special Economic Zones in the Global South

This research project examines the specific characteristics and impacts of China-associated special economic zones (SEZs) in the Global South, which have multiplied over the past two decades. SEZs are designated zones that aim to attract foreign investment, promote industrialisation and spearhead economic development. They are China-associated if they have benefited from some form of Chinese support in terms of planning, financing, construction, ownership or management. As SEZs contributed significantly to China’s remarkable economic growth since the 1980s, Chinese SEZs have been an inspiration in many developing countries, which now hope to achieve similar SEZ-led transformation of their own economies. The focus of this project has been on China-associated SEZs in India and Africa.

Aims

To examine the properties and characteristics of China-associated SEZs and trends and developments in their establishment and operation.
To evaluate the impacts of SEZs, including not only economically, but also especially the social, environmental and urbanisation impacts in areas surrounding SEZs.
To analyse the translation of a Chinese model of SEZ-led development to countries in the Global South.

Methods

In-depth case studies of selected SEZs, involving fieldwork and semi-structured interviews with government representatives, zone managers, investing firms (Chinese, other international and domestic), local villagers, migrant workers and others.
Geographic Information System (GIS) mapping of a selected sample of zones.
Creation and analysis of a large database of China-associated SEZs, compiled through information from publicly available sources.

Summary of Findings

SEZs often have a meaningful impact on the economies where they are established, supporting industrialisation and employment creation. However, this impact is rarely transformative as in China, and some SEZs fail to take off entirely.
The social and environmental consequences of establishing SEZs are immediate, resulting in significant and irreversible livelihood changes for local populations. While urbanisation and new economic opportunities can induce positive change for local populations and migrants, they also face a multitude of challenges from dispossession of land, livelihoods shifts, growing inequalities, insufficient labour rights protections and environmental degradation. These impacts can differ significantly by sex, ethnic group, socio-economic class, area of origin and skill level.
The establishment of China-associated SEZs in the Global South has economic, social, urbanisation and environmental outcomes that are sometimes similar to and sometimes different from those experienced in China’s own SEZs. Occasionally, the translation of China’s SEZ model into specific local contexts can result in unanticipated or unwanted outcomes.

Impact

The research has produced concrete recommendations for policymakers, companies, zone managers, international organisations, analysts, researchers and other stakeholders on how to strengthen the social inclusiveness and sustainability of SEZs. These have been compiled in the Special Economic Zones: Zone Social Responsibility Toolbox, together with explanations of the problem areas and illustrative examples from SEZ cases.

Partners

The research was undertaken in partnership with:

Dr Malini Tantri and Dr S Manasi from the Institute for Social and Economic Change, Bangalore, India
Osun State University and Hillside University of Science and Technology, Nigeria
Bishop Stuart University, Uganda