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Europe and post-dictator Southeast Asia. It is also important to recall
4
5
that the duration and nature of the connections between domestic and
foreign political and economic stakeholders, and above all the application
of the rule of law. In addition to substantial gains in growth and
employment that have characterized these two examples, there are
questions pertaining to patterns of “de-institutionalization” fueled by tax
exemption policies, both inside the zones and the surrounding areas.
Answering these questions necessitates understanding that different
forms of capitalism have dominated the two regions--the EU and
ASEAN—ranging from political capitalism to market capitalism, as well as
differences in the relationship between the rule of law in the two
regions and their respective political economies.

I. The Polish Zones

Special economic zones were first authorized in Poland in October
1994 as a way of increasing regional employment. At a time when
6
unemployment was affecting employment zones historically characterized
by an industrial monoculture and full employment, the firm’s decline
precipitated a widespread crisis in the surrounding areas. This was
especially true in rural areas dominated by single industrial firms that
often provided employment and many services to an entire region.
Employment was made a priority beginning in 1990, and Warsaw
decided to support the creation of the zones, and specific fiscal policies
were created for the regions (voivodships) experiencing unemployment
rates double the national average (approximately 20%). Tax exemptions
were primarily linked to job creation, and a company could enjoy tax
reductions over a period of ten years if it invested at least 10 million

4 David Stark et Laszlo Bruszt, 1998, Postsocialist Pathways. Transforming
Politics and Property in East Central Europe. Cambridge: Cambridge University
Press, 1998
5 Rodan G. Hewison K. & Robinson R. 2001, The Political Economy of South-
East Asia. Conflicts Crises, and Change, Oxford, Oxford University Press, [2 ed.].
th
6 20 Pazdziernika, Dz U. z 1994, n 123, poz. 600.
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