The interface
between zone and society
Most EPZs are planned and built with the particular
needs of investors in mind. The infrastructure and other facilities are usually
modern and ample and often better than those available in the domestic economy.
The surrounding social environment, however, is often not taken into account
and is not appropriate to the modern industrial environment inside the zone.
That may be because the social infrastructure and services fall under the
jurisdiction of other government departments, and the approach of the department
of trade or industry which is responsible for developing the zone may be a
more narrowly focused economic one. For whatever reason, many zones have found
that the interface with the local community is complicated. The zone may attract
large numbers of workers, frequently from outlying areas, who quickly overwhelm
the available housing and transport services and put pressure on every other
social service.
In some countries local landlords have taken advantage of the accommodation shortage to charge exorbitant rents for substandard accommodation, while in others zone workers have been forced to build shacks for shelter. In both cases the result is a workforce which suffers from fatigue and poor health. These symptoms may be aggravated by poor transport services which oblige workers to walk long distances to reach work, often having to leave home very early in the morning and not returning before late at night. This can expose them to physical danger, especially if they are young women. Enterprises suffer because workers are often late or tired or both, and many zone investors now provide transport for workers. Even so, it is not unusual for the company bus to drop off its last passenger three hours after leaving the factory gate.
In situations where the zone attracts workers from outlying districts, or even from other countries, friction between the zone workers and local residents is common. Where the "outsiders" are thousands of single young women the situation is even more delicate, with local men preying on the zone workers and local women accusing them of "stealing" their men. Either way, the inability of zone workers to integrate themselves or to establish a stable community life is a major factor contributing to the high labour turnover characteristic of many zones and needs to be addressed.
World-class export industries need to be able to invest in the training of workers secure in the knowledge that they will not leave to return to their home district because of a lack of suitable accommodation and services close to the zone. In order to provide a more appropriate and stable social environment, some zones are now providing for social infrastructure as part of the overall plan. The Carmelray Industrial Park II in the Philippines will be served by the purpose-built Carmel Town which is basing its comparative advantage on its educational facilities.
Some enterprises have started to address the inadequate social situation of their workers in an effort to build a more stable relationship. This is often an acknowledgement of the fact that the Government simply does not have the resources to provide the necessary social infrastructure. Capital- and skill-intensive industries and zones with tight labour markets are more inclined to accept such social responsibility. By providing housing, transport and child care services for example, or by using their resources to support cooperatives, enterprises benefit from higher productivity and lower labour turnover and absenteeism.