Special Economic Zones Stabilize Non-Democratic Regimes

What is it about?

"Anocracies" are a middle-regime type that are not democracies, but hold many democratic institutions (such as Singapore or Venezuela). Special economic zones (SEZs) are geographically restricted investment zones that offer specialized benefits to investors. These zones allow non-democratic regimes to prescreen potential economic elites for loyalty to the non-democratic regime before allowing them to locate within the zone. This screening process creates a self-enforcing equilibrium amongst elites that induces them to work together to achieve regime stability amongst and institutionally inconsistent environment that typically leads to instability (without SEZs).

Featured Image

Why is it important?

1. This paper utilizes original comprehensive data on SEZs collected by the author. 2. SEZs are largely ignored in the political science literature. 3. The majority of SEZs are located in non-democracies. 4. Non-democracies are involved in every war on the planet, hold nuclear weapons, sit on the UN Security Council, and hold vast amounts of strategic resources.