Panama's Special Economic Zones: Balancing Growth and Development

Abstract

The growth of Special Economic Zones (SEZs) in the Global South has been widespread and well documented. This article provides a comparative analysis of two SEZs in Panama that defy conventional export‐processing strategies by focussing on re‐exports and regional headquartering operations, which are relatively capital‐intensive rather than labour‐intensive. I argue that while this may be a sound economic growth strategy at the national scale, it must be complemented with directed, local strategies to address the country's chronic social development issues, which are underscored by centuries of institutional exclusion.

Transnational gentrification: Globalisation and neighbourhood change in Panama’s Casco Antiguo

“…In the wake of the reversion of the canal and the surrounding US-occupied lands in 1999, Panama City has undergone an extraordinary transformation as a series of new megaprojects has reoriented Panama as a prime hemispheric intermediary (Sigler, 2013(Sigler, , 2014c. Just a few kilometres to the northeast of the Casco Antiguo, the sky is dotted with cranes hoisted above a sea of glassy high-rise towers in the Costa del Este and Punta Pacifica, and in the former Canal Zone development is underway to reformulate several retired US military bases as centres of international commerce.…”

Graduated sovereignty and global governance gaps: Special economic zones and the illicit trade in tobacco products

“…Although the government has made some attempt to tighten anti-money laundering rules in recent years, the FATF and the IMF identify several remaining problems (IMF, 2014; Lawrence, 2015). While goods and money flow easily through Panama, Sigler (2014, p. 11) notes that the CFZ and the newer Panama Pacifico zone are poorly integrated with the surrounding areas, might exacerbate inequality, and erect ‘barriers to entry (both physical and social) to the majority of Panamanian society.’…”

Special Economic Zones as Growth and Anti-growth Poles as Exemplified by Polish Regions

“…However, it is difficult to generalise the effects of SEZs, as an overall research result is normally contingent upon a specific situation. According to Sigler (2014), the SEZs may in fact worsen the disparities in social development by creating entry barriers for a majority/part of a society (both physical and social restraints); allowing the import of a highly skilled workforce (instead of developing local training schemes); diminishing the benefits of international investments through a tax system that provides excessive tax reliefs; and allowing public authorities to be passive in implementing social development means and measures. For example, despite Panama's recent economic success many of its regions have been neglected by social services schemes, e.g.…”

“…SEZs consequently contribute to the overall development of a national economy. If they are, however, intended to serve as a local development generator, broad complementary social development schemes need to be implemented to maximise social benefits of economic growth (Sigler, 2014).…”