Is Government procurement a non fiscal incentive?
Government Procurement contracts is a very powerful, and yet often untapped, policy leaver to drive economic growth and development. This is especially true for special economic zones. Government Procurement contracts is a highly sensitive area given, among other things the potential national security, social, political and other implications.
However, even with these challenges this is a little explored area to catalyze zone investment, development and growth.
What are non fiscal incentives and why are they important for zone Regimes
Non-fiscal incentives have become of growing importance to special economic zone regimes around the world due to the pressures and strictures of the global economic governance system. This is particularly true of the OECD Inclusive Framework and its global minimum corporate income tax (Pillar 2) and the shrinking fiscal incentives policy options it presents to governments. Non-fiscal incentives are a viable policy option to counter these pressures.
