Governance of Cross-border Regions & SEZs: The case of Gwadar under CPEC

Abstract

Purpose: Examining the transformative impact of the China-Pakistan Economic Corridor (CPEC), a flagship project of China's Belt and Road Initiative (BRI), this research investigates how CPEC fosters cross-border cooperation and regional development. The research focuses on transnational institution building and the creation of multi-scalar geographies involving diverse public and private agencies, reshaping regional, sub-regional, and local territories. Design/Methodology/Approach: Employing a case study approach, the research focuses on Gwadar, the pivotal node of CPEC where the economic belt meets the maritime silk road. It integrates a literature review, analysis of official documents, and empirical data, supplemented by insights from independent researchers and international organizations such as the World Bank and IMF. Findings: The designation of Gwadar as a Special Economic Zone (SEZ) with a globally competitive deep-sea port has introduced significant economic opportunities. However, multi-scalar interactions have led to tensions between central and local authorities, reflecting conflicts between the Centre-led macroeconomic agenda and its socio-economic sustainability at the local level. Implications/Originality/Value: The research emphasizes the need to rescale political, economic, and social structures to establish sustainable institutions in cross-border regions. It provides policy recommendations for Gwadar's development, drawing lessons from global best practices such as Dubai, Shenzhen, and King Abdullah Economic City.