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Benefits and Problems of the Brazilian SEZ Model: Analysis of the Manaus Free Trade Zone
Abstract
One way of implementing economic policies for regional development is the creation of SEZs (Special Economic Zones), with the objective of integrating regions by means of tax incentives and investments in logistical infrastructure. In Brazil, the best known SEZ model is Manaus Free Trade Zone (MFTZ), implemented in the 1960s in a region surrounded by tropical forest, far from large urban and commercial centers and with low population density. Besides MFTZ, other SEZ models have been implemented or are in the process of implementation in Brazil, but without the impacts that MFTZ has experienced. In this study, the economic, demographic, and social characteristics of MFTZ were addressed to seek answers regarding the benefits and challenges of the Brazilian model. It can be concluded that despite the tax benefits given to industries in the Manaus Free Trade Zone and the visible economic growth in the region, there is much to advance in relation to social benefits and human development.
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