This games serves to highlight some of the likely effects of EIPZs in Southern Africa. In particular, the game aims to demonstrate how the unequal relationship between EIPZ investors and E13Z host countries will have the following results:
| Materials for the game 40 x 10 dollar notes |
Participants are divided into four groups:
The country groups shall consist of:
Each group will be presented with a general information sheet on the 3 EPZ countries and with specific instructions for each player. Each country and each investor receive $500 as capital for the game. The facilitator operates as supervisor of the game.
The game begins by each investor choosing a different country for a first round of negotiations. Each investor has 10 minutes to negotiate favourable investment conditions.
On the basis of incentives offered by the EPZ country, the investor will decide if and how and much to invest. The minimum investment is $100. Each country must try to attract as many investors as possible while each investor must try to achieve as many concessions as possible to make maximum profits. Each concession will earn the investor some money from the host country. The specific amounts are provided on a table.
In turn EPZ host countries will receive $100 for each investment received.
The government in each country has the final say over the incentives that will be offered. It will, however, have to consult with the trade unions, local business and community organisations in an effort to accommodate their views. If no consensus can be reached, it is up to government to decide on their incentives it wants to offer.
After each round of negotiations, the facilitator notes the outcome on a flip-chart:
The investors then move to the next country and negotiate again for 10 minutes. Again the outcome is noted on the flip-chart.
How much investment did each country attract and at what cost?
The facilitator then reads event cards for each country, depending on the incentives offered. For example:
The facilitator decides on these event cards according to the outcome of negotiations between EPZ countries and investors. The price for the events have to be. paid by the EPZ countries to the facilitator.
The game then continues for a third and final round. Again, the negotiations will last for 10 minutes, the results are noted on the flip-chart, and the facilitator will issue event cards to each country. The costs of the event cards are also noted on the flip-chart.
The facilitator then asks the question: 'Who won the game?"
Participants will see that the investors won the game while all EPZ countries were losing. This forms the basis for a discussion on EPZs and regional integration in Southern Africa.
1. Clothing and textiles company from USA |
| You are interested in establishing a production facility which will enable you to produce cheaply for both the market of a neighbouring country and for the USA. You have already EPZ factories in South American countries which offer you very favourable conditions for your investment. You are expecting the same conditions in Southern Africa. |
or: Clothing and textiles company from South Africa |
| In your home country you are faced with strong trade unions, relatively high wages and strict labour laws. To remain competitive, you want to relocate to a cheap production site from where you can export your goods into South Africa and Europe. |
2. Electronic company from South Korea |
| You want to establish assembly plants for radios and TVs to produce for markets in Southern Africa and in Western Europe. You need semi-skilled workers and you want to import all machines and materials for production (including semi-finished goods from your factories in Asia). You have oth~r factories in Asian EPZs were very favourable conditions are offered. |
3. Tyre company from Britain |
| You want to establish a tyre plants. in Southern Africa to produce for Southern Africa and Europe. Environmental laws in Europe are strict and you hope to escape such laws by producing in Southern Africa. Also you want to lower your costs for wages. You had to close your factory in the EPZ of Mexico because of community protests against air and water pollution of your company. You want to be protected against disruptions from trade unions and community activists. |
| MALOTHO | MOZAFRICA | ZIMBIA | |
| State of the economy | most people work in agriculture, few industries, widespread poverty, landlocked country. | economy destroyed because of civil war; much money needed to rebuild industries; rich fishing grounds. | small but well established local manufacturing sector, large civil service, cattle farming, commercial harbours. |
| Unemployment | about 10% due to subsistence farming | about 25% | about 40% |
| Average wage level | $1 per hour | $1.50 per hour | $2 per hour |
| Skills level | low | low | semi-skilled |
| Labour laws | basic worker rights | basic worker rights | basic worker rights plus minimum wage |
| Environmental laws | Not specific | Strict | Not specific |
| EPZ incentives | No tax on profits, No customs duty on imported machines and materials; Legal protection for investors property. | No company tax for 10 years; Free repatriation of profits; Constitutional guarantee against nationalisation | Subsidised water and electricity; No customs duty on imports; No company tax for 5 years. |
Pollution |
| Tyre factory throws toxic waste into a river. Thousands of fish die, people get sick and the government has to supply food aid for people who survived on fishing. The government also has to pay for extensive cleaning operations. Pay $200.00 |
More Incentives |
| Unemployment is becoming more and more serious. The government is under great pressure to create some jobs. It decides to offer 3 additional incentives to attract companies into the EPZs. Pay for 3 additional incentives |
Strike |
| Workers in the EPZ go on strike over bad working conditions. The government has to send in the police to end the strike. This leads to conflicts with the unions and a political crisis develops. Pay $100.00 |
Poisoning |
| Hundreds of EPZ workers fall W because of dust in the factories. They have no medical aid and the state clinics have to pay. for their treatment. Some workers are unable to continue working and have to live of social welfare Pay $150.00 |
Water Crisis |
| Your country is facing a severe drought and there is a water shortage, Water prices double but the government continues to subsidise water for EPZ companies. Pay $100.00 |
Political Crisis |
| There is unrest in the EM and the government is attacked for allowing the continued exploitation of workers. Unions threaten with a general strike and several EPZ companies relocate to neighbouring countries. Pay $200.00 |
Minimum Standards |
| Under pressure from unions and community organisations the government introduces protective law for workers and the environment. As a result several EPZ companies move to neighbouring countries. Pay $200.00 |
Leakages |
| Goods from EPZ companies enter the local market illegally. These goods are much cheaper than those produced by local companies. As a result 2 local companies close down and 400 workers loose their jobs. Pay $250.00 |
No Investment |
| You failed to attract foreign investment. Thousands of unemployed in your country are demonstrating calling for your resignation for failing to create jobs. Pay $70.00 |
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