The designation of Margarita as a Special Economic Zone aroused more skepticism than optimism in certain business groups in Nueva Esparta. The former president of the Chamber of Commerce, Free Port and Production of Nueva Esparta, Teodoro Bellorín, considers that there is enough material to “cut and sew” on this aspect (things to form and change), so he hopes that the debate will be much deeper and not superficial to determine if the model is good or bad.
By La Patilla – Dexcy Guédez
Aug 16, 2022
“Obviously, it is a special economic zone that has a worldwide recognition, because there are many projects that have been carried out, but very few have had good effects,” said Bellorín.
After the announcement, the Economy and Finance Commission of the National Assembly of Nicolás Maduro has held two sessions in Margarita, the most recent last Friday chaired by Nicolás Maduro Guerra, the dictator’s son of the same name.
Present in the conference room of a hotel in Porlamar, where the session was held, the former President of the Chamber of Commerce insisted that there are international statistics that reflect the number of economic zones that have succeeded or remain active, but there are more that have been lost or are not working.
“We are facing a complex environment and we must be very careful with expectations. Caution, prudence, focus. Beware of overestimates. “Not so much that it burns the saint, nor so little that it does not illuminate him” (moderate your expectations and efforts), paraphrased the business leader about the expectations that this announcement has generated among some businessmen of the entity.
He insisted that the world experience of the Special Economic Zones shows that there have been more failures than successes, as confirmed by the World Investment Report (WIR) based on a survey applied to 120 Investment Promotion Agencies (API) from 114 countries.
According to this statistic, of the 5,400 special economic zones registered, only 13% are in full use, 22% of them are still in use or in sufficient (adequate) occupation, while 47% persist between somewhat underused or somewhat vacant.
Teodoro Bellorín, former president of the Nueva Esparta Chamber of Commerce
Nothing New
For Mr. Bellorín, who cited several specialists in the field, it is important to remember history, because in his opinion the past does not disappear just like that.
He recalled that on August 6th, 1829, Simón Bolívar issued a free port decree for the island of Margarita, while on August 5th, 1967, the free zone regulations were issued. On September 8th, 1967, then President Rafael Caldera inaugurated the first free zone store in Porlamar.
In addition, on November 8th, 1974, when Carlos Andrés Pérez was president, he enacted the regulations for the free port of Margarita. Likewise, on August 3rd, 2000, the new Nueva Esparta State Free Port Law was enacted and on July 20th, 2022, the official AN announced the draft Law on Special Economic Zones.
He pointed out that he cited such dates to ratify that since the establishment of the free zone, the state has been a special economic zone that has been evolving until the approval of the Free Port Law in the year 2000, which grants Nueva Esparta a special customs release and a preferential tax regime, today relegated and debased in its application.
“Therefore, in our case, it would not be about the creation of a special economic zone, because it already exists, but about the expansion of the incentives that will be applied,” he remarked.
Margarita Before This New Scenario
Manuel Antonio Narváez, economist and former Director of Planning and Budget of the Government of Nueva Esparta
According to the businessman, the Organic Law of Special Economic Zones means a new opportunity to consolidate and further advance the socioeconomic development of this insular region, only if they manage to establish a clear roadmap, by virtue of the pre-existing advantages and incentives provided for in the law for new investments, all of which would allow greater feasibility for any project.
“But, is this enough? asks Bellorín, who maintains that tourism, like the free port, have been important engines for the development of Nueva Esparta State, but not enough to achieve comprehensive development through the convergence of other components of economic activity, and even more so when a greater and solid diversification of the state’s economy is proposed.
Very Centralist
For the economist Manuel Antonio Narváez, former director of Planning and Budget of the Government of Nueva Esparta, the debate is interesting, but it is necessary to leave behind the recurring and sensationalist phrases.
“We can say that today we have two systems and two laws for the consolidation and advancement of the regional economy. The two models should work separately and independently, with the greatest harmony possible to prevent and overcome possible deviations in their operation, as has happened in recent years with the free port,” explained the expert.
He admitted that the Organic Law of Special Economic Zones can be useful to insular interests in terms of increasing the tax and tariff advantages currently in force in the terms that have been proposed.
Entrepreneurs highlight that from the free zone, Margarita is a Special Economic Zone
However, he stressed that one must be alert to the existence of latent threats in the very provisions of that law, taking into account the heavy centralism and the limited clarity that characterizes the administrative functioning scheme that is instituted in it.
In this regard, he emphasized that it is very striking that the Development Plan of the Special Economic Zone is prepared by the Superintendency of the same SEZ (Special Economic Zone, ZEE in Spanish).
Likewise, he warned that the Single Authority of the Special Economic Zone, like the Single District Authority, is appointed by Nicolás Maduro himself, while economic activity projects are approved by the ministries.
Respect for Federalism
Mr. Narváez explained that since Nueva Esparta is a decentralized federal entity, according to article 4 of the Constitution of the Bolivarian Republic of 1999, they consider that there is still time to assert the principle of federalism to counter the rigid centralism in the design of the Special Economic Zone.
“We propose that in the decree creating the Nueva Esparta Special Economic Zone, it be designated a person who really knows and is known in Nueva Esparta, and who has its residence in the state, but who is also qualified to efficiently face this important challenge.
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