Hello everyone, today we have a very insightful article on Free Trade Zones, from a highly established Nigerian Free Zone Expert, in the person of Alhaji Yusufu Abdullahi. He will be a guest writer on this blog sharing diverse opinion on his expertise, contributing immensely to the growth of the Nigerian economy.
I am so excited for you all to read and learn about the Nigerian Free Trade Zone, you will be amazed at how much you would be learning from Alhaji Abdullahi's articles which will be published here from time to time.
For the benefit of those who don't know what a Free Trade Zone is, a free trade zone, according to Wikipedia is a specific class of special economic zone.They are a geographic area where goods can be landed,handled,manufactured, or reconfigured and re-exported without the intervention of customs authorities. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to prevailing customs duties.Free Zone are organized around major seaports,international airports and national frontiers.
Enjoy the article below.
Free Trade Zone is not a new concept in human development. Free Trade Zone has been around since the era of mercantilism in trade, time in memorial. The expo trade posts like Singapore, Dubai, Hong Kong, to name a few, all developed because of free trade.
Modern free trade zone came into focus because of the effort of the free world to facilitate the development of certain depressed areas of the world. A good example is Shannon Free Trade Zone in the Republic of Ireland, started its development in 1957. Shannon was an abandoned American Air-base used during the Second World, the free zone took up from the base to supply its cheap consumer products to USA and Europe. The activity of the zone has spread development into Republic Ireland to a level that it is competitive, on equal footing, with any western society. Similarly the abandoned Black Sea Port of the Soviet Union in Romania has been transformed into free trade zone making consumers goods destined to European markets. Part of the benefits enjoyed by Egypt in its peace settlement with the State of Israel is a number of free trade zones spread into the desert manufacturing garments and vehicles parts for the European vehicle manufacturers and beyond.
The Asian Tigers also started in the sixties including some states in South America. South Korea, Taiwan, Malaysia, Thailand, Indonesia to mention a few are highly developed manufacturing cheap consumer goods, available in all the markets of the world. Brazil, Argentina, Costa Rico, are some of the countries that are utilizing the concept of free trade zone as a development tool.
The modern city of Dubai grabbed the free trade zone concept in 1985 when the Emirate realized that its source of revenue, crude oil, would soon diminished and dried up, consequently it decided to go back to its traditional services in mercantilism. Jabel Ali Free Trade Zone was developed by the port of Dubai and came into being in 1985.
Dubai became an extended warehouse for the Asian Tigers including Japan, as a market. The other members of the Emirate have been using the same concept with determination to transform the economies of their various countries. Today, it is a success story across the Emirate. They are not totally dependent on crude oil revenue for development.
The most important tread in this phenomena is the rapid economic and human development where free trade zone is fully accepted as a tool. Irish youth were migrating to USA in great number to find opportunities but the development of free trade zone and Silicon Valley in California has opened more opportunities for the youth in Ireland. Computer chips are developed shipped to Silicon Valley from Shannon Free Trade Zone. This development helped to slow down the massive migration of the youth.
In the United Emirate, the activities of free trade zones have rapidly expanded economic and human development to the extent that the Emirate is importing labour, technical and strategic staffing. Most important is the rising of per capital income to its citizens leading to high standard of living. The Asian Tigers have also seen the rapid capital, human and economic development within a short time.
We would continue next time with the attraction of free trade zones.
Credit: Yusuf Abdullahi
I am so excited for you all to read and learn about the Nigerian Free Trade Zone, you will be amazed at how much you would be learning from Alhaji Abdullahi's articles which will be published here from time to time.
For the benefit of those who don't know what a Free Trade Zone is, a free trade zone, according to Wikipedia is a specific class of special economic zone.They are a geographic area where goods can be landed,handled,manufactured, or reconfigured and re-exported without the intervention of customs authorities. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to prevailing customs duties.Free Zone are organized around major seaports,international airports and national frontiers.
Enjoy the article below.
Free Trade Zone is not a new concept in human development. Free Trade Zone has been around since the era of mercantilism in trade, time in memorial. The expo trade posts like Singapore, Dubai, Hong Kong, to name a few, all developed because of free trade.
Modern free trade zone came into focus because of the effort of the free world to facilitate the development of certain depressed areas of the world. A good example is Shannon Free Trade Zone in the Republic of Ireland, started its development in 1957. Shannon was an abandoned American Air-base used during the Second World, the free zone took up from the base to supply its cheap consumer products to USA and Europe. The activity of the zone has spread development into Republic Ireland to a level that it is competitive, on equal footing, with any western society. Similarly the abandoned Black Sea Port of the Soviet Union in Romania has been transformed into free trade zone making consumers goods destined to European markets. Part of the benefits enjoyed by Egypt in its peace settlement with the State of Israel is a number of free trade zones spread into the desert manufacturing garments and vehicles parts for the European vehicle manufacturers and beyond.
The Asian Tigers also started in the sixties including some states in South America. South Korea, Taiwan, Malaysia, Thailand, Indonesia to mention a few are highly developed manufacturing cheap consumer goods, available in all the markets of the world. Brazil, Argentina, Costa Rico, are some of the countries that are utilizing the concept of free trade zone as a development tool.
The modern city of Dubai grabbed the free trade zone concept in 1985 when the Emirate realized that its source of revenue, crude oil, would soon diminished and dried up, consequently it decided to go back to its traditional services in mercantilism. Jabel Ali Free Trade Zone was developed by the port of Dubai and came into being in 1985.
Dubai became an extended warehouse for the Asian Tigers including Japan, as a market. The other members of the Emirate have been using the same concept with determination to transform the economies of their various countries. Today, it is a success story across the Emirate. They are not totally dependent on crude oil revenue for development.
The most important tread in this phenomena is the rapid economic and human development where free trade zone is fully accepted as a tool. Irish youth were migrating to USA in great number to find opportunities but the development of free trade zone and Silicon Valley in California has opened more opportunities for the youth in Ireland. Computer chips are developed shipped to Silicon Valley from Shannon Free Trade Zone. This development helped to slow down the massive migration of the youth.
In the United Emirate, the activities of free trade zones have rapidly expanded economic and human development to the extent that the Emirate is importing labour, technical and strategic staffing. Most important is the rising of per capital income to its citizens leading to high standard of living. The Asian Tigers have also seen the rapid capital, human and economic development within a short time.
We would continue next time with the attraction of free trade zones.
Credit: Yusuf Abdullahi
I always wondered if free trade zones were literal in meaning. Never got around to Google. Thanks poster.
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