Experts highlight importance of efficient processes in freezones

Top Stories

Experts highlight importance of efficient processes in freezones
Gokhan Akinci, global product leader, World Bank Group, Hernando Jose Gomez, former Columbian Ambassador to WTO, Columbia, Martin Ibarra, vice chairman, World FZO, Colombia and Przemyslaw Kowalski, senior trade economist, Organization for Economic Cooperation and Development, France, during the conference

Published: Wed 11 May 2016, 6:16 PM

Last updated: Wed 11 May 2016, 10:51 PM

It is important to carefully monitor a freezone's operations and determine if certain processes are costing more money than they should be, experts at the second Annual International Conference and Exhibition organised by World Free Zones Organization (World FZO), said.
Speaking in a panel discussion, Gary Gereffi, Professor of Sociology, and founding director of the Center on Globalization, Governance & Competitiveness at Duke University, USA, described the freezones of the future as a meeting point, and elaborated on how they had changed over time. He also highlighted the importance of being aware of inefficient processes that cause a freezone to lose money. To combat this, Gereffi advised attendees to invest in technologies and processes that allow them to avoid such inefficiencies.
"Nowadays, countries have become much more ambitious in saying that they want to improve both the quality and quantity of the items that they are exporting. It is important to be aware of the challenges that crop up with your success, especially when it comes to attracting foreign direct investment," said Gereffi.
Speaking in the same discussion, Martin Ibarra, vice chairman of World FZO, Colombia, added: "If you notice, in the last 20 years, the composition of international trade has changed significantly. A lot of goods that are being traded today are actually the parts of an item which might be assembled in another country. Today there are more than 3,000 freezones in the world, and what is interesting to note is that the more advanced an economy of a country, the more it is likely to close its border. The less developed a country, the more difficult it is for it to close its border."
Hernando Jose Gomez, former Colombian ambassador to WTO, Colombia, noted that in developing countries, freezones are like pockets of opportunity. He highlighted the need for governments to promote research and development in freezones. He also spoke about how it is important for freezones to attract the right kind of human capital and invest in proper staff training, which in turn can lead to innovation.
"It is also important for governments to promote synergies in companies in their freezones. Fortunately, many companies within a freezone produce similar products so it is easy to promote a healthy sense of competition," he said.
World FZO's second Annual International Conference and Exhibition has drawn attendees from around the world including global economic experts, academics, government officials, and policy makers. The event is taking place under the patronage of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
- rohma@khaleejtimes.com
 

By Rohma Sadaqat

  • Follow us on
  • google-news
  • whatsapp
  • telegram

More news from