The Global Zone Network, a Safe Pathway to Prosperity in the post-Coronavirus Era?

Abstract

The coronavirus pandemic has underlined the vulnerability of global supply and value chains. Free trade zones can play a crucial role in re-booting the world economy but need to break out of the historical binary paradigm through which they have traditionally been viewed. New multitiered Advanced Special Economic Zones (ASEZs), named Prosperity Zones, need to be created with an inner core built around a modernised compliant free trade zone, and with outer layers offering integrated incentives and benefits for a wide range of businesses and support services. These zones will be the engine room of new and more resilient ‘Trade Superhighways’ that offer increased safety, compliance, predictability and flexibility to international trade. This paper outlines the development of a new paradigm of transparent and compliant Prosperity Zones that have emerged from traditional freeports and freezones and how these new Prosperity Zones will play an essential role in the development of emerging supply chains and future integrated value chains, especially in the aftermath of the COVID-19 crisis. This paper will highlight the importance of developing a new and all-embracing global standard for Prosperity Zones and the potential for the emergence of new Trade Superhighways that will bring greater transparency to trade and become a crucial factor in driving value during the coming economic recovery.