Special economic zones (SEZs) can play a catalytic role in economic development, provided the right business environment and policies are put in place. In Asia, SEZs can facilitate trade, investment, and policy reform at a time the region is experiencing a slowdown in trade and economic growth. For SEZs to be successful, they must establish strong backward and forward linkages with the overall economy. Effective SEZs must be an integral part of dynamic national development strategies and evolve as economies develop by transforming from manufacturing bases to technological platforms for innovation and modern services.

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