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judgement on the success of the zone.
Although the SSEZ
has probably disappointed its supporters as regards the way it has developed, it is still possible that it will
succeed at least partly as intended. The net outflow of
foreign exchange and the large inflow of imports are consistent with the way in which the SSEZ's development is being financed trading profits and foreign investment. Any front-end loaded investment experiences a negative cash flow in its early stages. Just as it would be wrong
to declare the SSEZ a success on the basis of the
investment that has been achieved
as the Chinese sometimes suggest it would be wrong to say it was a failure because that investment has yet to bear full
fruit.
—
Considerable potential is there, only time will
tell whether it can be realised.
Economic Analysis Division Economic Services Branch Government Secretariat 10 December 1985
G.F. 326
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