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31-614: The Cagayan Economic Zone Authority (CEZA) is a Filipino special economic zone that is a government-owned and controlled corporation (GOCC) tasked to manage and supervise the development of the Cagayan Special Economic Zone and Freeport (CSEZFP) in the Philippines . Its creation and operation are mandated by virtue of Republic Act 7922, otherwise known as the “Cagayan Special Economic Zone Act of 1995” by then President Fidel V. Ramos . The Cagayan Economic Zone Act of 1995

62-581: A "reversal of fortunes" in China's dealings with foreigners since the century of humiliation . Researcher Zongyuan Zoe Liu writes that "[t]he success of these cities as 'red' treaty ports represented another step in China's overall reform and opening-up plan while legitimizing the leadership of the CPC over the Chinese state and people." Numerous African countries have set up SEZs in connection with China, including over

93-572: A paralyzing jolt to anyone who believes in American standards of progress and civilization." In May 1947, the Puerto Rican legislature passed the Industrial Incentives Act eliminating all corporate taxes, to encourage U.S. investment in industry. The initiative granted private and foreign investment a ten year period of exemption from taxes on many of the expenses for businesses involved in

124-525: A rural agricultural society was transformed into an industrial working class. Although initially touted as an economic miracle, by the 1960s, Operation Bootstrap was increasingly hampered by a growing unemployment problem. As living standards and wages in Puerto Rico rose, manpower-intensive industries faced competition from outside the United States. It also faced criticism from civil rights groups and

155-413: A security measure to insure the plan’s viability.” The US government in Puerto Rico enticed US companies by providing labor at costs below those on the mainland, access to US markets without import duties, and profits that could transfer to the mainland free from federal taxation. The Administration of Economic Development invited investment of external capital, importing the raw materials , and exporting

186-536: A share of the manufacturing market. At the time, modernization theory was the driving force behind American program development in the Cold War era. As a result, Operation Bootstrap focused on educational development to fuel economic development in Puerto Rico. In the 1950s, education was viewed as the cornerstone of Island development and was allocated more of the Islands budget than any other public sector. From 1932-1957

217-424: A stable job as a result of Operation Bootstrap received higher wages than before, in fact, "The average real weekly salary in manufacturing increased from $ 18 for men and $ 12 for women in 1953 to $ 44 and $ 37 respectively in 1963." The increase in industrialization and manufacturing saw positive effects in other places, as new electric grids were built, new roads were paved in major cities, and major housing development

248-529: A zone, they are granted a period of lower taxation. The creation of special economic zones by the host country may be motivated by the desire to attract foreign direct investment (FDI). The benefits a company gains by being in a special economic zone may mean that it can produce and trade goods at a lower price, aimed at being globally competitive. In some countries, the zones have been criticized for being little more than labor camps , with workers denied fundamental labor rights . The definition of an SEZ

279-708: Is a trend of southeast Asian countries to develop and increase their SEZs. Since 2015, Thailand developed ten SEZs. As of 2024, Indonesia has 13 SEZs, the Philippines has 12 SEZs, and Cambodia has 31 SEZs. The term special economic zone can include: SEZs do not differ from other facilities in industrializing economies. As with any technique administered used by a globalized economy there are oversights by actors that are not domestic. Transnational criminal organizations and terrorist groups have taken advantage of Special Economic Zones and their lack of regulations. Operation Bootstrap The island's traditional economy

310-535: Is determined individually by each country. According to the World Bank in 2008, the modern-day special economic zone typically includes a "geographically limited area, usually physically secured (fenced-in); single management or administration; eligibility for benefits based upon physical location within the zone; separate customs area (duty-free benefits) and streamlined procedures." The United States has long applied special economic rules to its outlying territories for

341-556: The Catholic Church , who perceived the government promoting birth control, and engaging in non-consensual surgical sterilization . American industrialists influenced by eugenicists policies were concerned with "overpopulation" and a perceived lack of self-control on the part of the working class Puerto Ricans. As of 2005 the continental United States remains Puerto Rico's major trading partner, received 86% of Puerto Rico's exports and providing 69% of its imports. Those able to secure

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372-609: The Puerto Rico Industrial Development Company (PRIDCO) — encouraged the establishment of factories. Following the Elective Governor Act of 1947 (also known as the Crawford-Butler Act), Muñoz was elected the first governor of Puerto Rico while under U.S. control, paving the way for the full establishment of Operation Bootstrap across the island. According to Virginia Sanchez Korrol from

403-402: The 1940s and to the 1960s, programs supported by the United States encouraged sterilization and birth control for the women on the island. These programs were birthed out of a perceived "overpopulation" problem on the island. Puerto Rican families averaged 5 to 6 people per family, and this was labeled as partly the reason for the unemployment and high poverty rates on the island. Luis Muñoz Marín

434-508: The Center for Puerto Rican Studies, Operation Bootstrap was based on 3 essential elements: “1) industrialization by invitation: the inducement of American corporations to relocate in Puerto Rico in exchange for lucrative tax benefits; (2)  a cheap labor pool, educated in the English language and under a U.S. imposed curriculum; (3) proposed emigration of over a third of the island’s population,

465-409: The Philippines. It is envisioned to be a self-sustaining industrial, commercial, financial, tourism, and recreational center, in order to effectively encourage and attract legitimate and productive local and foreign investments and eventually create employment opportunities and increase income and productivity in the rural areas around Freeport Zone. The Cagayan Special Economic Zone also serves as one of

496-464: The United States for better financial opportunities and higher wages. In the 1950s (the peak of Puerto Rican emigration from the island), as ~470,000 Puerto Ricans emigrated from their country, they went to cities like New York City (where 85% of which people settled), Philadelphia, and others along the East Coast. Through the 60's and 70's, emigration from Puerto Rico declined dramatically. Throughout

527-459: The economy of Puerto Rico Pre-World War II. Also, while U.S. businesses sought Puerto Ricans for labor, these businesses were still very willing to continue to seek new, and even cheaper forms of labor. High volatility in employment for those on the island was a direct result. This led to mass unemployment across the island, with the countryside seeing the largest effect. Residents were forced to either move to bigger cities like San Juan or immigrate to

558-529: The finished products to the mainland. To entice participation, tax exemptions and differential rental rates were offered for industrial facilities. As a result, Puerto Rico's economy shifted labor from agriculture to manufacturing and tourism . The manufacturing sector has shifted from the original labor-intensive industries, such as the manufacturing of food, tobacco, leather, and apparel products, to more capital-intensive industries, such as pharmaceuticals, chemicals, machinery, and electronics. Through this project,

589-671: The industrial economy. These exemptions included: This was proposed by Senator Luis Muñoz Marín of the Popular Democratic Party , and became known as Operation Bootstrap. Based on 1930s New Deal economic relief reforms and infrastructure provided by the programs such as the Puerto Rico Reconstruction Administration , Operation Bootstrap intended to move Puerto Rico away from its agrarian system and into an industrial economy. The government's Administration of Economic Development — today known as

620-553: The island was transferred to the United States in 1898 after the Spanish-American War, it remained mostly neglected. Conditions in Puerto Rico worsened during the world wars, after years of neglect. Pressure grew in the U.S. to address the worsening situation, influenced by journalists like John Gunther who described the island in 1941 as such: "I saw, in short, misery, disease, squalor, filth. It would be lamentable enough to see this anywhere...to see it on American territory...is

651-563: The jurisdiction of CEZA. It is surrounded by the waters of Babuyan Channel and the South China Sea on the North and the Pacific Ocean in the east. 18°22′30″N 122°06′30″E  /  18.37500°N 122.10833°E  / 18.37500; 122.10833 Special economic zone A special economic zone ( SEZ ) is an area in which the business and trade laws are different from

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682-600: The main gambling jurisdictions in the Philippines. CEZA is headed by Secretary Katrina Ponce Enrile as Administrator and Chief Executive Officer. Spatially, the Cagayan Economic Zone & Freeport covers the entire Municipality of Sta. Ana , including the Islands of Fuga, Barit, and Mabbag in the Municipality of Aparri in the Province of Cagayan. Approximately 54,118 hectares of land for prime development fall within

713-467: The number of students enrolled in vocational education went from 5,700 to 110,000. The rise in vocational education was designed to prepare Puerto Rican's for work in factories newly developed by the Bootstrap program. Mass emigration from Puerto Rico was a result of Operation Bootstrap. The growth of the industrial sector could not match the rapid decline of monocultural plantation jobs that characterized

744-696: The opening of China in 1979 by Deng Xiaoping was the Shenzhen Special Economic Zone , which encouraged foreign investment and simultaneously accelerated industrialization in this region. These zones attracted investment from multinational corporations and allowed export-oriented Chinese businesses to respond quickly to demand in foreign markets. China continues to maintain Special Economic Zones and certain open coastal areas. Most of China's SEZs are located in former treaty ports and therefore have symbolic significance in demonstrating

775-618: The period 1990 to 2018 establishing SEZs in Nigeria (two), Zambia, Djibouti, Kenya, Mauritius, Mauritania, Egypt, and Algeria. Generally, the Chinese government takes a hands-off approach, leaving it to Chinese enterprises to work to establish such zones (although it does provide support in the form of grants, loans, and subsidies, including support via the China Africa Development Fund ). The Forum on China-Africa Cooperation promotes these SEZs heavily. As of at least 2024, there

806-418: The purpose of economic development. Section 936 corporate tax exemptions for Puerto Rico began with Operation Bootstrap in the 1940s and ended in 2006. The federal minimum wage for U.S. territories has in the past been lower than in the states, and as of 2024, American Samoa is still adjusting upward to the nation-wide minimum. Modern SEZs appeared from the late-1950s in industrial countries. The first

837-490: The rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increased investment, job creation and effective administration. To encourage businesses to set up in the zone, financial policies are introduced. These policies typically encompass investing, taxation , trading, quotas, customs and labour regulations . Additionally, companies may be offered tax holidays , where upon establishing themselves in

868-571: Was authored by former Senator Juan Ponce Enrile , a native of Gonzaga town in Cagayan. It is the first economic zone in the Philippines to offer to host of financial technology companies in the emerging fintech industry with the issuance of the first batch of FTSOVC certificates to three locators. The Cagayan Special Economic Zone and Freeport , also known as Cagayan Freeport , is a special economic zone in Cagayan Province, northern Luzon , in

899-462: Was based around sugarcane plantations ; of the 516,730 jobs on the island in 1940, almost half of them were agriculture-based, with 124,076 of these based on sugar-cane farms. However, Esteban Bird described in detail the misgivings of the sugarcane industry and the monoculture economy in general. By the middle of the twentieth century it remained one of the poorest in the Caribbean. After possession of

930-621: Was in Shannon Airport in County Clare , Ireland . Some tax-free jurisdictions such as the Cayman Islands offer technology companies a way to keep their IP offshore in a Special Economic Zone (see Cayman Enterprise City ). From the 1970s onward, zones providing labour-intensive manufacturing have been established, starting in Latin America and East Asia . The first in China following

961-491: Was underway. As a result, life expectancy in Puerto Rico jumped almost 23 years. Manufacturing jobs also led to a shift in the job market as it pertains to gender. In 1940, women represented half of the total population of Puerto Rico, but represented less than 25% of the labor force. Women in Operation Bootstrap were targeted as an important labor force, especially for the garment and apparel industry, which represented

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