What Mexico Can Learn from Haiti's Development Plans

The idea sounds simple: Special Economic Zones (SEZs) offer tax exemptions and cheap labor as hooks to attract investment from foreign companies. Money trickles in, local suppliers get a foothold and the middle class begins to grow. At least, in theory.

Mexico is betting big on SEZs, with a new federal law that will create four of them in some of the poorest regions of the country. But the truth is that it’s a risky play, and the track record of SEZs in the region is less than stellar. Even with the...

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