Export processing zones and development : the Tanzanian experience in the face of neoliberal policy prescriptions

Abstract

Export Processing Zones (EPZs) is an economic policy model used to accelerate industrialization and is employed by many countries in Sub-Saharan Africa (SSA) and in many parts of the developing world. It is believed that EPZs can lead to industrialization mainly by increasing exports, diversifying domestic industry and large scale employment creation.This thesis examines the role of the state in developing EPZs in relation to protecting domestic capital while trying to attract foreign capital. Tanzania's EPZ policies are examined to determine if the policy environment established allows the state to actively engage in directing investment and developing domestic industry in order to promote industrialization.The thesis demonstrates that although Tanzania aims at emulating the Asian countries success in industrializing using EPZs, Tanzania has not developed an interventionist model and the role of the state has been reduced to be minimalist following neoliberal prescriptions