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D 5.2 Report on industrial strategies and poverty

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Industrial “clusters” and free trade zones (maquiladoras in Mexico, EPZ in Asia, Manaus Free Trade Zone in Brazil…) are a practice used in many countries and represent a large part of trade in emerging and developing countries. Such enclaves benefit from tax, customs and legal exemptions. They present higher levels of employment, FDI, technology transfers and externalities. Using case studies, we assess their real contribution to the reduction of multidimensional poverty, especially in matters of quality and quantity of jobs, social behaviour and discrimination, internal migration, repercussions of these “enclaves” on the “policy space” and exacerbation of “South-South” competition possibly leading to a “race-tothe-bottom” process.