Interaction between islands and special economic zones: Spatial processes of containment and exclusion

Abstract

Despite considerable research into special economic zones (SEZs) and Island Studies, islands and SEZs are rarely considered together. Islands and SEZs are, however, closely associated, in part due to the attractiveness of island characteristics (remoteness, boundedness, isolation) for exclusive economic processes. Many prominent SEZs are located on small islands, and many island economies function similarly to SEZs. Defining SEZs as ‘bounded spaces of economic and regulatory exception’, this paper considers deregulated industrial zones and exclusively branded smart cities and eco-cities, as well as island SEZs designed for external benefit and for local benefit. The study shows that spatial processes of containment and exclusion are supported by islands and are especially useful for crafting SEZs, which may specialise in industries such as financial services, manufacturing, gaming, port services and high-end tourism. Nevertheless, SEZ processes often create negative social, economic and environmental impacts. Island SEZs developed for external interest often seek to contain harm within islands or to exclude unfavourable factors, resulting in a spatial mismatch of harms and benefits. Island SEZs developed for local interest struggle to externalise harms, creating problems for island populations. The paper argues for the value of understanding islands and SEZs together, without exceptionalising them.