Friday, March 27, 2009

Zones of freedom - the real and unreal


The importance of free economic zones (SEZ) as a tool for economic development can be measured by the interest shown in him throughout the world. Governments are using the SEZ to boost economic activity, increase investment, employment, international trade, etc.

25 varieties
In today's world are about 2000 SEZ, including more than 400 free trade zones, the same scientific and industrial parks, more than 300 export-production zones, 100 special-purpose zones (ecological and economical, off-shore, tourism, etc. ). There are about 25 varieties of free economic zones (SEZ).

There are zones that are targeted at foreign markets, there is - on the inner. As they have every facility for Customs, lease, exchange, visa, labor and other regimes, which creates conditions for industrial development and investment of foreign capital. In such zones in operation for about one third of the world's bank deposits in developed countries.

The first SEZ was established in the U.S. act in 1934 in the form of foreign trade zones. Their goal was to activate the foreign trade activities by reducing customs costs. Companies operating in these zones to appear from under the customs control in the U.S., where imported goods in the zone and then sent to a third country. Other world leaders and legislators in the creation and development experience and to improve the FEZ is Ireland. It has over 20 years of free trade zones has grown from an agricultural country into a leading member of the European Economic Community.

In Japan, widespread so-called free zone imports. They represent the region, developed within the framework of the law on special measures for the development of imports and investment. " Example - a zone free of import "Sakaiminato. To facilitate the entrepreneurs here, a number of measures: the provision of medium and small firms loans at low interest rates, differential taxation, preferential payment for the supply of equipment, tax exemption on the ground of manufacturing, wholesale trade, transport and much more.

In developing countries, the largest spread of export-production zones (FTE). Their main function, achieving a higher degree of industrialization in some sectors or the economy as a whole, promoting integration into the world economy and international trade.

For example, in Malaysia, such zones have played a major role in the transition from import to export. The companies were given tax credits for investments and incentives for investors.

Mexico in 90 years have gone from strict protectionism and state control in all areas to virtually complete openness and liberalization of the economy and the integration into the global economy. In the case of investment, one of the main actors in Mexico, given the mechanism of free export and industrial zones, known as "maquiladoras".

The essence of this mechanism was to provide foreign and domestic investors with the special preferential regimes for the production of industrial products for export. As a result of the maquiladora industry in Mexico have become almost the main lever of economic growth.

A similar role for the economies of their countries played a free economic zone in Brazil and most countries in Southeast Asia.

China - a special way of assessing the effectiveness of free economic zones, the experts are almost always cited as an example of China. And this is no accident. The Chinese practice of CEZ has nearly a quarter century. Since 1980 the PRC was established five special economic regions (OER):-Shen Chern, Zhuhai and Shantou in Guangdong Province, Xiamen in Fujian Province, and Hainan Island. Also in the early 80's, the Government of China has opened to foreign trade in 14 cities, mainly large ports of the country.

In 1985 he began to create an open economic zones in the delta of the Yangtze River and Chzhutszyan, in the southern province of Fujian, on Shandunskom Lyaodunskom and peninsulas, as well as in Guangxi. In five years, the Chinese Government has decided on a new development area Pudun in Shanghai and the development of a number of cities along the Yangtze, which has led to an open strip along the river as an "umbrella of open area."

Since 1991, the status of SEZ were administrative centers of the inland provinces and autonomous regions, as well as a number of border settlements. In large and medium-birth of the country was set up 13 duty-free zones, 32 zones of techno-economic development and 52 - development of new and high technologies of national significance.

All of the special economic areas are oriented to external markets. Of the five OER exported more than 50% of the products they produce. This is mainly a network of trade and marketing, manufacturing, and research. OER are implemented on the territory of special economic policies and a special control system. Foreign investors enjoy where many customs and tax privileges granted them more rights and powers. This allows China to acquire the most sophisticated types of equipment and technology, modern management techniques borrow production, obtain reliable information on the situation on world commodity and financial markets to raise the level of training of their staff.

To create a special economic areas are not spared either government forces or resources. And 80% of the cost of infrastructure were laid on the Chinese side, foreign investors were almost all finished. Regarding the 14 open coastal cities, they have a role as a "window" and intermediaries in the foreign market. Created in the cities of the area of technical-economic development attract foreign investors.

In August this year, Chinese authorities announced that one of the largest free economic zones of the country - a port Tiandzhin - has received U.S. government approval to create a "commercial and industrial park in the United States. By the end of 2004, this Chinese economic zone will be operational in the United Arab Emirates. Thus, China has now begun to export its SEZ.

The result of already existing zones there. They export more than 50% of its products and receive billions of dollars of investment, mainly producing goods with a high degree of processing. Virtually all of the challenges posed by the Chinese SEZ is implemented: able to attract foreign capital, acquire management experience, to prepare a national human resources, increase the export of foreign exchange earnings, to encourage reform, effective use of natural resources, and much more.

And we all walk in a circle Russia SEZ set up throughout the 90 years (from 1990 to 1999. Was founded more than 20 zones). However, their effectiveness can be questioned. Error was that the area was seen as a universal means of achieving the set of complex goals. In the regions, for some reason was convinced that enough to declare himself a free zone and introduce a range of tax or other benefits, will come as soon as foreign capital, which can be solved the most pressing social, economic and even environmental issues.

The failure has contributed to instability and legislation. In the first half of the 90-ies of the primary goal of SEZ activity seen in the development of export production and attracting investment, with producers in the free zone offers a wide range of tax and customs privileges. But later, these privileges have been revoked.

Among other reasons, analysts also see the huge size of the majority of Russian SEZ, the lack of infrastructure (transport, telecommunications, communications, hotel service) in the territory where they are located. Not enough to adopt the law on free economic zone of a territory, you need a comprehensive settlement (which cost in the amount of $ 20 million to $ 70 million per 1 sq. Km.). In Russia, this has clearly not been taken into account. In Russia, economic and legal preferential treatment was granted a huge territorial edge and areas larger than the size of some Asian and European nations. The establishment of zones to the extent made possible the practical realization of concessional customs, fiscal and monetary regimes. Such regimes established SEZ will inevitably lead to huge economic losses to the state. New Russian SEZ, according to government officials, have already in 2005 The first violin, but rather all of the first, again will play the Kaliningrad region. This enclave has all chances to become a successful project: a large port, the proximity of the EU infrastructure.

However, even in government, where the agreement in fashion, there are a large number of opponents of the free economic zones. Thus, the Ministry of Finance believes that the World Trade Organization not too supported the establishment of free trade zones. While not clearly defined zone of operation, will be against the WTO, but the desire to engage in the organization of the Government had not yet lost. "

Talk of SEZ in the corridors of power are, as long the law on special economic zones in the two years spinning in the interagency agreement.

Chief lobbyist and developer Bill - Ministry of Economic Development, the project which is expected to create favorable conditions for the development of economic and scientific potential of the country, attracting investment in its economy through the creation and functioning of special economic zones.

Ministry of Economic Development has tried to make laws to take into account the mistakes of the past: in the technical-promotional zones will generate new ideas, and industrial production - to produce goods. Zone of the first type can hold a maximum area of 1 square. km, while the second - ten.

No tax incentives at the federal level is not provided. Investors will be able to receive benefits only on the product, which is produced inside the zone. This preferential tax would not apply to affiliated companies outside the special economic zone. Moreover, the benefits, as well as the timing of their provision will be strictly limited by federal law.

As the developers of the law, above all in the draft - minimum administrative barriers, infrastructure and the most favorable customs regime.

It should be recognized that the idea is good, but the options of free economic zones can be as varied as how different Russian regions. Free ports and transit zones, development zones with tax incentives for certain industries or companies (for depressed regions), special economic zones (for the strategically important regions), dot the area (for certain business entities in the regions), the international zone (for border areas) - all this for the economy are very promising. But no one is taken to predict how long will the path from paper to actual project implementation.



Stepan Gvozdev

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