SEZs to facilitate economic growth, more investment
Monday, 29 September 2008
FE Report
Formation of special economic zones (SEZs) will pave the way for more productive use of land, labour, capital and infrastructure leading to greater investment, economic growth and social development in the country, experts said on Sunday.
They agreed that SEZ was not a choice between agriculture and industry, rather an excellent tool for integrating industrial, agricultural and service sectors.
The remarks were made at a 'Media Presentation Briefing on Economic Zone' held at a city hotel on the day.
IFC Bangladesh Investment Climate Fund (IFC BICF) organised the event which consisted of two sessions -- one focusing on the basic concepts of economic zones and the second on one particular type of zone, namely, the SEZs -- using case studies from all around the world.
The experts said both foreign and local investors feel comfortable in setting up their industries in economic zones as they get ready-to-use land, utilities and the right environment to do business.
They expressed the opinion that the proposed ordinance on SEZs should be flexible in allowing those to be set by the private sector or under private-public partnership (PPP).
"We are expecting that the ordinance on SEZs will be approved next month," IFC BICF senior programme manager Syed Akhtar Mahmood said.
Referring to lower economic growth in western part of the country compared to that in the east, Mr. Mahmood said this is high time to initiate move for formation of SEZs which can help reduce the gap.
Though land for ensuring the country's food security is very important, he said, but "We need to think about industrialisation through proper use of land to hasten the eradication of poverty."
Presenting two papers, IFC Investment Policy Analyst Mustafizul Hye Shakir defined economic zones as a geographically delimited area with a special regime and a single administration/management that delivers services to zone tenants on a day-to-day basis.
"SEZs often have streamlined procedures and are considered to be a separate customs area," he added.
International Economic Zones Expert Deborah Porte said: "Proper planning is the key to the success of economic zones."
Many countries across the world, including China, Jordan and the Philippines, have attained excellent economic growth through such economic zones, Ms Porte added.
She said that the media is the ideal stakeholder to ensure that the zone development process is transparent, and that the decision on how to develop the zones and where to locate them is not based on vested interests of a selective few.
IFC BICF programme manager Martin Norman, however, pointed out the media's role is to ensure accountability and transparency of all stakeholders, government and private sector alike, in the development and implementation of SEZs in the country.
Bangladesh Investment Climate Fund (BICF) of IFC, a member of the World Bank Group, is a long-term technical program targeting a better operating environment for businesses.
IFC BICF is funded by the U.K. Department for International Development (DFID) and the European Commission (EC), which are consistent with the Bangladesh government's strategic vision for private sector development within its poverty reduction strategy.
Government agencies and IFC BICF-in close collaboration with key stakeholders jointly design and implement programmes to institute business friendly policies, laws and regulations, and strengthen the institutions that implement them.
Formation of special economic zones (SEZs) will pave the way for more productive use of land, labour, capital and infrastructure leading to greater investment, economic growth and social development in the country, experts said on Sunday.
They agreed that SEZ was not a choice between agriculture and industry, rather an excellent tool for integrating industrial, agricultural and service sectors.
The remarks were made at a 'Media Presentation Briefing on Economic Zone' held at a city hotel on the day.
IFC Bangladesh Investment Climate Fund (IFC BICF) organised the event which consisted of two sessions -- one focusing on the basic concepts of economic zones and the second on one particular type of zone, namely, the SEZs -- using case studies from all around the world.
The experts said both foreign and local investors feel comfortable in setting up their industries in economic zones as they get ready-to-use land, utilities and the right environment to do business.
They expressed the opinion that the proposed ordinance on SEZs should be flexible in allowing those to be set by the private sector or under private-public partnership (PPP).
"We are expecting that the ordinance on SEZs will be approved next month," IFC BICF senior programme manager Syed Akhtar Mahmood said.
Referring to lower economic growth in western part of the country compared to that in the east, Mr. Mahmood said this is high time to initiate move for formation of SEZs which can help reduce the gap.
Though land for ensuring the country's food security is very important, he said, but "We need to think about industrialisation through proper use of land to hasten the eradication of poverty."
Presenting two papers, IFC Investment Policy Analyst Mustafizul Hye Shakir defined economic zones as a geographically delimited area with a special regime and a single administration/management that delivers services to zone tenants on a day-to-day basis.
"SEZs often have streamlined procedures and are considered to be a separate customs area," he added.
International Economic Zones Expert Deborah Porte said: "Proper planning is the key to the success of economic zones."
Many countries across the world, including China, Jordan and the Philippines, have attained excellent economic growth through such economic zones, Ms Porte added.
She said that the media is the ideal stakeholder to ensure that the zone development process is transparent, and that the decision on how to develop the zones and where to locate them is not based on vested interests of a selective few.
IFC BICF programme manager Martin Norman, however, pointed out the media's role is to ensure accountability and transparency of all stakeholders, government and private sector alike, in the development and implementation of SEZs in the country.
Bangladesh Investment Climate Fund (BICF) of IFC, a member of the World Bank Group, is a long-term technical program targeting a better operating environment for businesses.
IFC BICF is funded by the U.K. Department for International Development (DFID) and the European Commission (EC), which are consistent with the Bangladesh government's strategic vision for private sector development within its poverty reduction strategy.
Government agencies and IFC BICF-in close collaboration with key stakeholders jointly design and implement programmes to institute business friendly policies, laws and regulations, and strengthen the institutions that implement them.