Strengthen key There is no template which governments and other actors can use and apply across all external sectors, all economies and over time. economies to Discrete, decisive, well overcome Attune actions appropriately to the context of proportioned, transparent, cluster development. infrastructure actions are required to constraints Distinguish between actions relevant to all address these issues. and promote clusters and those only relevant to particular sectoral clusters, and hence be mindful of trust and the dangers of bowing to the pressure from collective special interest groups. action Support for clusters must There is no formula for an optimal time tread a careful path period. Actions are between being long enough The time period will be governed by the dynamic and to support structural context, level of cluster development, sector, time-limited change and not being too and particular policy interventions proposed. long to dull entrepreneurial spirit. Table 2: An Action Plan for Special Economic Zones Policy Directive Rationale Key Implementation Activity Strategic The official SEZs are an Negotiate bi-lateral arrangements to ensure policy directed integral component of a greater and deepening presence of at the Chinese Chinese aid packages in domestic firms in their supply chains within selected countries with the government these SEZs. objective of assisting their aid packages SOEs with inputs from Chinese firms. Deal directly Pressure these lead Chinese private firms to These PIEs typically grow with Chinese facilitate the entry of local supplier firms into organically from a “first lead firms over these estates and into their own supply which comer” industrialist privately chains. has established a developed successful enterprise and is looking to procure industrial supplies locally. estates (PIEs)
Strengthen key external economies to overcome infrastructure constraints and promote trust and collective action Discrete, decisive, well proportioned, transparent, actions are required to address these issues. There is no template which governments and other actors can use and apply across all sectors, all economies and over time. Attune actions appropriately to the context of cluster development. Distinguish between actions relevant to all clusters and those only relevant to particular sectoral clusters, and hence be mindful of the dangers of bowing to the pressure from special interest groups. Actions are dynamic and time-limited Support for clusters must tread a careful path between being long enough to support structural change and not being too long to dull entrepreneurial spirit. There is no formula for an optimal time period. The time period will be governed by the context, level of cluster development, sector, and particular policy interventions proposed. Table 2: An Action Plan for Special Economic Zones Policy Directive Rationale Key Implementation Activity Strategic policy directed at the Chinese government aid packages The official SEZs are an integral component of Chinese aid packages in selected countries with the objective of assisting their SOEs with inputs from Chinese firms. Negotiate bi-lateral arrangements to ensure a greater and deepening presence of domestic firms in their supply chains within these SEZs. Deal directly with Chinese lead firms over privately developed industrial estates (PIEs) These PIEs typically grow organically from a “first comer” industrialist which has established a successful enterprise and is looking to procure supplies locally. Pressure these lead Chinese private firms to facilitate the entry of local supplier firms into these estates and into their own supply chains.