Special Economic Zones (SEZs) have become a popular policy instrument around the world. Policymakers in the developing world increasingly see them as a way to easily promote industrial development, attract foreign investment, and stimulate job creation.

SEZs exist in very different forms and sizes and under various names like free zone, export processing zone, enterprise zone, and so on.

SEZs are not a silver bullet for attracting investment or augmenting job creation but policymakers can take concrete steps to make sure they achieve their objectives.