Encyklopedia Administracji Publicznej MW Pivot Skin

SPECIAL ECONOMIC ZONE – administratively separated part of the territory of the state, intended for conducting business activity on preferential terms (e.g., tax exemptions, trade facilitation, special staff regulations). Another advantage is that an investor can start his activity in specially prepared territory with utilities. Investments in s.e.z. can contribute to: accelerated economic development of regions, the development and use of new technical and technological solutions in the state economy, reduction of unemployment, creation of new jobs, improvement of management of post-industrial property and infrastructure, and – in the long-term – improvement of competitiveness of the economy of the state that established the s.e.z. The disadvantages of the investments in the s.e.z. include: administrative fees (e.g., zone fee to cover the costs of the zone management bodies), reporting obligations and additional fiscal controls (e.g., verification of business activities in the context of compliance with the concession rules in force in the zone), limits on the types of activities to be run in the zone (to those proposed by the state), increased costs of buying land and real estate in the zone (compared with the market prices outside the zone). Permissions for conducting business activity in s.e.z. are issued by the relevant zone administrations (e.g., a company that manages the s.e.z.). These bodies are also entrusted with assisting investors by facilitating contacts with local authorities or central administration (e.g., in the purchase of land for investment, post-investment care). Today’s s.e.z. appeared in the 1950s (Shannon in Ireland, 1959). Currently s.e.z. are present, among others, in Poland, in Ukraine, and in China [ K. Tomaszewski ].