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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.
                                                    o




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