Export production zone
Export production zones , in short: EPZ ( export processing zone or free trade zone ) denotes one or more areas in a country in which the regular customs and tax regulations are no longer in force. This state of affairs is mostly tolerated and promoted by government agencies on the grounds that the EPZ would bring jobs and foreign exchange . So-called “ sweatshops ” - in Central America these businesses are called maquiladoras - are often located in export production zones.
The resulting favorable conditions are intended to encourage foreign companies to relocate their production to the EPZs. EPZs are therefore mostly located in so-called developing countries. The development policy idea underlying the concept is that investors, after initially being attracted by the favorable production conditions, move their production permanently to the target countries and thus strengthen the country's economy. The EPZs are u. a. characterized by extremely low wages, poor working conditions, inadequate health and safety and oppression of trade unions. Young women in particular are employed in EPZs. Probably the best-known example are the maquiladoras (or maquilas), which were set up in the 1970s, export production factories on the Mexican / US border.
The concept of EPZs arose at the beginning of the 20th century, but it has gained in importance especially since the 1960s when more and more production was relocated from industrialized countries to so-called developing countries. In 1964, for example, the United Nations Economic and Social Council passed a resolution in which EPZs were advocated as a means of promoting trade with so-called developing countries. The first EPZs were being built in South Korea , Taiwan , Hong Kong and Singapore at the time . Above all, however, from the 1980s onwards there was an enormous increase in production in EPZs. The World Bank's structural adjustment programs also played a key role here. The EPZs should therefore improve the position of the so-called developing countries, as they would create jobs and increase GDP. They should also help the so-called developing countries to pay off their debts with the industrialized countries.
This development must be viewed in the context of the globalization that became apparent in the last decades of the 20th century, in which the national state is experiencing a change in meaning. The highlighted importance of international organizations such as the World Bank or the IMF is interesting here. Other supranational entities such as the EU, NAFTA, ASEAN, Mercosur and the like. a. have become central political actors. Significantly, NAFTA has been promoting the expansion of maquiladoras in Mexico since it was founded in 1994. But the role of economic actors should not be underestimated either. Transnational companies are now appearing more powerful than nation states, which are only supposed to guarantee them the necessary framework conditions (contractual security, property rights, etc.) (see Davos Man).
See also
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- Avin, Rose-Marie (1999): International Economics. In: Peterson, Janice / Lewis, Margaret (Eds.): The Elgar Companion to Feminist Economics. Cheltenham, Northampton: Edward Elgar, 489-499
- Benería, Lourdes (2007): Gender and the social construction of markets. In: Staveren, Irene van / Elson, Diane / Grown, Caren / Cagatay, Nilüfer (eds.): The Feminist Economic of Trade. London, New York: Routledge, pp. 13-32
- Naomi Klein: No Logo! Goldmann Verlag, 6th edition 2002, ISBN 3442153123
- Globalization Handbook