Professional Documents
Culture Documents
Analysis
5.1 Findings – Presentation and Analysis
The literature reviewed and the data collected in this project, using a
answer the main research question: What are the purpose and the importance
The examination of the literature review and the data collected also answers
program?
3. What factors within the EPZ program influences its impact on the
Belizean Economy?
5.2 Presentation of Findings related to each Subordinate
Question
Question 1
5.2.1 How have EPZ evolved in Belize?
status of companies.
The EPZ Act of 1990 provided for the establishment and operation of EPZ
Unfortunately the original EPZ Act did not contain provisions that
The EPZ Act of 1990 only provided for the operations of EPZ Developers to be
an EPZ Developer. (EPZ Act 1990) This aspect of the EPZ Act should have
only one EPZ Designation, an EPZ Developer, in the program from the
introduction of the Act in 1990 to its first amendment in 1994. (Table 3 and
Figure 3)
Table 3
Annual Designation and Industry (1992 – 2003)
Year Industry
EPZ Ye
Developer Aquaculture Data-Processing Manufacturing Agro-Processing Other TOTAL %
1992 1 0 0 0 0 0 1
1993 0 0 0 0 0 0 0
1994 0 0 0 0 0 0 0
1995 0 0 1 1 0 0 2
1996 0 1 0 0 0 0 1
1997 0 3 0 0 0 0 3
1998 0 2 0 0 3 0 5
1999 1 1 5 0 2 0 9
2000 3 6 16 2 2 0 29 2
2001 0 2 12 2 0 0 16 1
2002 0 3 12 1 1 4 21 1
2003 2 1 14 1 2 4 24 2
TOTAL 7 19 60 7 10 8 111
Industry
% 6.3 17.1 54.1 6.3 9 7.2 100
Figure 3
Annual Designation and Industry (1992 – 2003)
18
Number of companies 16
14
EPZ Developer
12 Acquaculture
10 Data-Processing
8 Manufacturing
6 Agro-Processing
Other
4
2
0
92
94
96
98
00
02
19
19
19
19
20
20
Year
The implemented clustering policy was clearly unsuccessful to the extent that
no EPZ Business obtained designation during the first four (4) years of the
program.
The amendments to the legislation in 1994 provided investors with the added
option of attaining EPZ status for a single business and its facilities, a Special
EPZ (EPZ Act 1994). In effect a single Special EPZ firm represented its own
EPZ Business and EPZ Developer in one. These “stand alone’, Special EPZ
designations increased from zero (0) in 1994 to two (2) in 1995 to thirteen (13)
Table 4
Annual Designation and Type (1992 – 2003)
Year Type
Developer Business Special TOTAL
1992 1 0 0 1
1993 0 0 0 0
1994 0 0 0 0
1995 0 0 2 2
1996 0 0 1 1
1997 0 0 3 3
1998 0 1 4 5
1999 1 5 3 9
2000 3 17 9 29
2001 0 12 4 16
2002 0 14 7 21
2003 2 17 5 24
TOTAL 7 66 38 111
Type % 6.3 59.5 34.2 100
Figure 4
Annual Designation and Type (1992 – 2003)
18
Number of Companies 16
14
12 Developer
10
Business
8
6 Special
4
2
0
92
94
96
98
00
02
19
19
19
19
20
20
Year of Designation
So
These thirty eight (38) Special EPZ designations were widely distributed in
Table 5
Industry and Type
Industry Type
Developer Business Special TOTAL
Aquaculture 0 0 19 19
Data-Processing 0 59 1 60
Manufacturing 0 5 2 7
Agro-Processing 0 1 9 10
Other 0 1 6 8
Developer 7 0 0 7
TOTAL 7 66 38 111
Type % 6.3 59.5 34.2 100
Figure 5
Industry and Type
70
60
Number of Companies
50 Acquaculture
Data-Processing
40 Manufacturing
30 Agro=Processing
Other
20 Developer
10
0
Developer Business Special
Designation Type
Sour
program in respect to companies operating. From 1995 to 1997, all six (6)
Data-Processing, one (1), and Aquaculture, four (4). (Table 5 and Figure 4)
members on the EPZC from eight to ten and expanding the membership by
including the Belize Chamber of Commerce, the Small Business Sector, the
Industrial Sector, the EPZ Developers and the EPZ Businesses. Also there
was a decentralization of power from the Minister under whose portfolio the
Budget Speech, Rebalancing Growth to Work for all Belizeans, informed that
amendments to the EPZ Act, would lead to the effective administration of EPZ
legislation disallowing any exemptions on fuel not used for energy generation
Belize Dollars and increasing the fines an penalties for violations respectively.
The EPZ Act of 1990 represented the government opting to implement the
better control the impact of the fenced off zones on the regional and national
economy (Madani, 1999). For instance, some of the early Chinese SEZs
were designed as enclaves or “laboratories” where capitalist ideas, working
relationships and dynamics are evaluated before potential propagation into the
rest of the economy (Madani, 1999). The enclave system was designed
earnings (Baissac, 2003) The impact of fenced-off zones are limited to the
immediate region where they are located and their locational limitation
1999) The 1994 amendment reflected a change in policy toward the new
vibrant form of EPZ. This new paradigm of EPZ was recognized as dynamic,
1999). This approach has been so rewarding that both Mauritian and
The added diversity of the EPZC members and the expansion of the EPZC
charge of regulation and administration of the EPZ regime should work closely
imports, provided a sound basis for the EPZ authority to continue effectively
The analysis of the legislation’s evolution reveals that the EPZ program has
advance legislatively from the static enclave type to recognizing the new
tool.
passing of the EPZ legislation in 1990 to the designation of only one (1) EPZ
Developer in 1992. (Table 3 and Figure 3) From 1992 to 1994 the program
experienced a stagnant period until the original act of 1990 was amended to
make provisions for Special EPZ and the decentralization of the government’s
authority to the EPZC which was also expanded to reflect a cross section of
the major stakeholders of the program. The period of 1995 to 1997 the
program was immediately expanded by six (6) new Special EPZ in the
EPZ Businesses into the program which totaled fifty nine (59) and represented
fifty four point one (54.1) percent of the total designated companies in the
program as at the end of 2003. (Table 3 and Figure 3) The line of businesses
an increase in the number and the diversity of the Special EPZ. The program
developed from one (1) EPZ Developer with no EPZ Businesses in operation
and two (2) Special EPZ during the period of 1990 to 1995 in to a program that
has expanded to encompass Agro-Processing and Other industries as of 2003.
and Xylophone Bars. (Table 1) Organic Rice, Honey, Fruits and Vegetables
Oils, Bamboo Shoot Cultivation and Processing are all merged into
Fonseca, 2004, informed that the cruise ship and tourism entities currently
operating in Belize have been signaled that they may be granted EPZ status
EPZ program. Data Pro e-Business Park offers state-of-the-art office space,
from one thousand (1,000) to ten thousand (10,000) square feet (DataPro,
2004) All buildings are equipped with all the necessary utilities such as
electricity, water, air conditioning, and are pre-installed with fiber optic cable
throughout. Offices are situated in an access restricted twenty four (24) hour,
Bandwidth is supplied in dedicated lines that range from a 64K line, to an E-1
connection. Gemini also offers discount long-distance, 1-800 number
Through its strategic partners, DataPro e-Business Park offers a wide range of
Internet Gaming turnkey packages and other legal services (DataPro, 2004).
income tax, no capital gains tax, and no sales or value added tax. All
equipment including service and utility vehicles and office furniture are free of
the private sector led diversification and paradigm shift of not only EPZ in
Belize, but also that of the wider Belizean economy. DataPro e-Business
Park was designed and built from the ground up with the information Economy
These inactive companies represent shell companies which are held by the
The program has evolved from one that was initially epitomized by a garment
company, which characterizes the static enclave type of EPZ programs of the
past, to a program that is dynamic and filled with vigor; great private sector led
sustainable development prospective and is in constant transformation. (Table
1)
The program has investors from North America (American and Canada), Asia
(Taiwan and Korea), Latin America (Panama) and Belize. The program has
Table 6
Annual Designation and Ownership (1992 – 2003)
Year Ownership Nationality
Joint
Belizean Ventures American Taiwanese Koreans Canadian Panamanian TOTAL
1992 1 0 0 0 0 0 0 1
1993 0 0 0 0 0 0 0 0
1994 0 0 0 0 0 0 0 0
1995 1 0 1 0 0 0 0 2
1996 1 0 0 0 0 0 0 1
1997 3 0 0 0 0 0 0 3
1998 3 0 2 0 0 0 0 5
1999 7 1 1 0 0 0 0 9
2000 19 2 4 3 1 0 0 29
2001 14 0 1 1 0 0 0 16
2002 13 1 5 0 0 1 1 21
2003 16 1 6 0 0 1 0 24
TOTAL 78 5 20 4 1 2 1 111
Ownership
% 703 4.5 18 3.6 0.9 0.18 0.9 100
Figure 6
Annual Designation and Ownership (Detail on Foreign) (1999 – 2003)
20
18
16 Belizean
Number of Companies
14 Joint Ventures
12 American
10 Taiw anese
8 Koreans
6 Canadian
4 Panamainian
2
0
92
94
96
98
00
02
19
19
19
19
20
20
Year of Designation
The program is dominated with Belizean and American ownership and this is
further characterized by only these two groups having designations in all six
Table 7
Ownership and Industry
Industry Ownership
Joint
Belizean Venture American Taiwanese Korean Canadian Panamanian TOTAL
Aquaculture 10 3 5 1 0 0 0 19
Data Processing 53 0 6 0 0 1 0 60
Manufacturing 1 1 2 2 1 0 0 7
Agro-Processing 6 1 1 1 0 1 0 10
EPZ Developer 6 0 1 0 0 0 0 7
Other 2 0 5 0 0 0 1 8
TOTAL 78 5 20 4 1 2 1 111
Figure 7
Ownership and Industry
Number of Companies
60
50
40 Belizean
30
Joint Venture
20
10 American
0 Taiw anese
er
Korean
ng
g
re
er
ri n
in
op
si
tu
th
ss
es
tu
el
ul
Canadian
ce
ev
ac
ac
oc
ro
uf
D
qu
Pr
-P
an
Panamanian
Ac
a-
EP
ro
M
at
Ag
D
Industry
The program has evolved from the presence of Belizean and American
South Korea, Malaysia, Sri Lanka, China, Indonesia, and the Philippines,
the welfare of citizens and that there should be a balance between domestic
central/east, Cayo, west, and Stann Creek and Toledo, south. (Figure 6)
Belize’s barrier reef, which is 185 miles long, is the longest in the Western
Hemisphere. Its cays are located between the mainland and the barrier reef,
on the barrier reef, and on or within the barrier reef perimeters of the offshore
atolls. The northern half of the mainland of Belize is a plain and has large
areas of table land. The land is covered with a thin layer of soil, which
supports scrub vegetation and dense hardwood tropical forest. The coastal
area is neither land nor sea, but a sodden, swampy transition between the two.
cypress, and sycamore where the land separates the water. The central part of
Belize consists of sandy soil that supports large savannas. Approximately thirty
miles southwest of Belize City, the land begins to rise dramatically to between
1,500 and 3,680 feet above sea level into the Mountain Pine Ridge Area and
the Maya Mountains. Abundant rainfall runs off the northwest from the
watershed to the southeast from the Maya Mountains, consists of short rivers
that rush through slopes combed with overhanging ledges and caves. The
rivers, carrying sand, clay and silt, have enriched the coastal belt over the years,
bananas. Along with an annual rainfall of some 170 inches, southern Belize has
a true tropical rain forest that is rich with ferns, palms, lianas, and tropical
hardwoods.
Figure 8
Map of Belize by Districts
The program has grown in reference to EPZ locations from one (1) in the
northern district of Corozal in 1992 to four (4) of the other five (5) districts.
(Table 8 and Figure 9) There has been no EPZ designation in Orange Walk.
Table 8
Annual Designation and Location (1992 – 2003)
Year District
Orange Stann
Corozal Walk Belize Cayo Creek Toledo TOTAL
1992 1 0 0 0 0 0 1
1993 0 0 0 0 0 0 0
1994 0 0 0 0 0 0 0
1995 0 0 2 0 0 0 2
1996 0 0 0 0 0 1 1
1997 0 0 1 0 2 0 3
1998 1 0 1 1 1 1 5
1999 0 0 6 0 3 0 9
2000 3 0 18 3 4 1 29
2001 0 0 13 2 1 0 16
2002 3 0 12 3 3 0 21
2003 2 0 20 1 1 0 24
TOTAL 10 0 73 10 15 3 111
District % 8.1 0 65.8 9 15.3 0.18 100
Figure 9
Annual Designation and Location (1992 – 2003)
25
20
Number of Companie
Corozal
Orange Wlak
15
Belize
Cayo
10
Stann Creek
5 Toledo
0
92
94
96
98
00
02
19
19
19
19
20
20
Year
S
The surge of designations since 1999 has been based in the Belize district,
sixty five (65.8) percent of total designations and this has been in
Table 9
Location and Industry
Industry District
Orange Stann
Corozal Walk Belize Cayo Creek Toledo TOTAL
Aquaculture 0 0 4 2 9 3 18
Data-Processing 0 0 60 0 0 0 60
Manufacturing 1 0 2 4 0 0 7
Agro-Processing 2 0 0 3 5 0 10
EPZ Developer 3 0 4 0 0 0 7
Other 4 0 3 1 1 0 9
TOTAL 10 0 73 10 15 3 111
Figure 10
Location and Industry
70
60
Number of Companies
Acquaculture
50
Data-Processing
40 Manufacturing
30 Agro-Processing
EPZ Developer
20
Other
10
0
k
ek
do
al
o
e
la
ay
liz
oz
re
W
le
Be
C
or
To
e
C
n
ng
an
ra
St
O
Industries
Mandani, 1999, insists that EPZ would not flourish unless they were fitted with
easy access to sea ports or airports, energy and water sources, good roads,
and adequately skilled workers. He explained that in 1973 the Bataan Zone
in the Philippines, located in a mountainous area some one hundred and sixty
(160) kilo meters from Manila, despite the government spending nearly US
$200 was a prime example of a poor location, which failed to reach its goals
due to it isolation from the country’s industrial center and poor infrastructure.
southern district of Toledo, the poorest district of the country, and the high
was not only inevitable, but it also increases the effectiveness of the program.
Table 10
Annual Designation and Status (1992 – 2003)
Year Status
Active Inactive TOTAL
1992 1 0 1
1993 0 0 0
1994 0 0 0
1995 1 1 2
1996 1 0 1
1997 3 0 3
1998 5 0 5
1999 6 3 9
2000 15 14 29
2001 7 9 16
2002 9 12 21
2003 5 19 24
TOTAL 53 58 111
Status % 47.7 52.3 100
Figure 11
Annual Designation and Status (1992 – 2003)
35
Number of Companies
30
25
Active
20
Inactive
15
TOTAL
10
5
0
92
93
94
95
96
97
98
99
00
01
02
03
19
19
19
19
19
19
19
19
20
20
20
20
Year
So
seventeen (17), which are also the most operational companies in the six (6)
to two (2). (Table 11 and Figure 12) Data -Processing accounts for forty
three (43) of the fifty eight (58) inactive companies (Table 11 and Figure 11)
Table 11
Industry and Status
Industry Status
Active Inactive Total
Aquaculture 17 2 19
Data-Processing 17 43 60
Manufacturing 5 2 7
Agro-Processing 7 3 10
EPZ Developer 3 4 7
Other 4 4 8
TOTAL 53 58 111
Figure 12
Industry and Status
NUmber of Companies
50
45
40
35 Active
30
25 Inactive
20
15
10
5
0
er
n
g
re
er
si
ri n
in
op
tu
th
es
ss
tu
el
ul
O
oc
ce
ev
ac
ac
Pr
ro
uf
D
qu
-P
a-
an
Z
Ac
EP
at
ro
M
D
Ag
Industry
Of the total one hundred and eleven 111 designated companies fifty three (53)
are active and fifty eight (58) are inactive. (Table 10) Belizean designated
companies have the most number of active companies in the program, thirty
(30), on the other hand, this group also accounts for forty eight (48) of the fifty
eight (58) inactive companies. (Table 12 and Figure 12) The Panamanian
designated company and the two (2) Canadian designated companies are all
inactive. (Table 13 and Figure 14) The only designated Korean company is
active. Of the three (3) designated Taiwanese companies only one is active.
(Table 12 and Figure 12) American investors account for seventeen (17)
Table 12
Ownership Status
Active Inactive TOTAL
Belizean 30 48 78
Joint
Venture 4 1 5
American 17 3 20
Taiwanese 1 3 4
Korean 1 0 1
Canadian 0 2 2
Panamanian 0 1 1
TOTAL 53 58 111
Figure 13
Ownership and Status
60
Number of Companies
50
40
Active
30
Inactive
20
10
0
n
re
n
n
an
an
ia
e
ia
ea
es
tu
an
ic
re
ad
en
liz
an
er
m
Ko
an
Be
tV
Am
na
iw
C
Ta
in
Pa
Jo
Ownership
So
The Belize district has the most number of active companies in the program,
twenty five (25) of fifty three (53); conversely it also contained the majority of
inactive companies, forty eight (48) of fifty eight (58). (Table 13 and Figure 12)
In the two southern districts of Stann Creek and Toledo all companies that had
eleven (11) companies were operational. (Table 13 and Figure 12) Corozal,
along with Belize, is the only district that had more inactive companies than
active; four (4) companies were active and six (6) were inactive. (Table 13 and
Figure 14)
Table 13
Location and Status
Status Location
Orange Stann
Corozal Walk Belize Cayo Creek Toledo TOTAL
Active 4 0 25 7 14 3 53
Inactive 6 0 48 4 0 0 58
TOTAL 10 0 73 11 14 3 111
Figure 14
Location and Status
60
Number of Companies
50
40
Active
30
Inactive
20
10
0
Corozal Orange Belize Cayo Stann Toledo
Wlak Creek
District
So
companies which has been nullified with the inactivity of these companies.
result of the Data-Processing EPZ Developer building up its private sector led
companies which are held by the Developer and marketed to local and
The data affirms that the EPZ program has evolved positively in relation to its
legislative aspects. The legislation was amended to expand from the static
zones that use solely imported materials to one that allows for designations to
resource specific areas like the shrimp farms in the emerging Aquaculture
industry, the citrus processing in the Agro-Processing industry and the use of a
rock quarry to produce stone tiles and slabs in Manufacturing. The legislation
This affirms the theory that EPZ programs should seek to foster economic
layers of domestic capital, the most educated and productive labor, and
be an effective economic tool the scheme should not seek to achieve regional
In terms of ownership, the program is diverse, though the diversity does not
further development of the program that the foreign investors increase, which
will lead to an increase in foreign capital, transfer of technology, skill,
Question 2
gain an over view of the country in relation to EPZ operations. This review will
be carried out on human development, poverty, GDP growth, and GDP factors.
Belize ranked sixty seven (67), out of the 175 countries, on the UNDP’s 2003
position places it high in the Medium human development ranking. (Table 14)
Both regions’ ranking in the global human development report 2003 are
classified by having a few countries being ranked high and all the other
countries falling under medium ranking. (Table 15 and Table 16)) In terms of
the Caribbean Haiti falls under low human development. In both the
Caribbean and Central American regions Belize falls in the middle of the
Table 14
Summary of Human Development Index 2003
World
Rank High HD (1-55)
1 Norway
2 Iceland
3 Sweden
4 Australia
5 Netherlands
Medium HD
(56-141)
67 Belize
84 Paraguay
85 Philippines
86 Maldives
87 Turkmenistan
Low HD
(142-175)
171 Burundi
172 Mali
173 Burkina Faso
174 Niger
175 Sierra Leone
Table 16
Central America in the Human Development Index 2003
Central
American World
Rank Rank High HD
1 42 Costa Rica
2 55 Mexico
Medium
HD
3 59 Panama
4 67 Belize
El
5 105 Salvador
6 115 Honduras
7 119 Guatemala
8 121 Nicaragua
Low HD
Belize’s GDP growth rate has been cyclical. (Figure 15) The period from the
growth in GDP. 2001 and 2002 reflected a down turn which is attributed to a
Keith, October 2000, Chantal August 2001, and Iris October 2001 and the
shrimp industry was affected by the Taura virus which led to less production
annual GDP growth rate commenced. The GDP growth for 2003, four point
nine (9) percent, was driven by increased activities in the tourism, banana and
economy has averaged seven (7) percent GDP growth from 1998 to 2003,
Figure 15
Gross Domestic Product Annual Growth Rate (1961 to 2003)
14
12
10
8
GDP %
2
0
1961
1965
1969
1973
1977
1981
1985
1989
1993
1997
2001
-2
-4
Year
Belize’s GDP is greatly influenced by the EPZ program. The EPZ program’s
Fishing, and the Manufacturing industry, stone tile and slab production, is
projected to increase the Belize’s GDP through Mining and Quarrying. The
industry percentage contributions to GDP, there has been a three point six (3.6)
industries, and a zero point five (0.5) decrease in Primary industries. (Table
17)
been the only area of decrease, from twelve point four (12.4) in 1994 to nine
point two (9.2) in 2003; Fishing has been the only area of increase its
contribution, from two point two (2.2) in 1994 to five (5.0) in 2003, and Mining
and Quarrying has remained constant at zero point five (0.5). (Table 16) The
EPZ program has contributed to this surge in Fishing through its Aquaculture
industry, which accounts for a majority of the Fishing industry with its farmed
shrimp produce. The EPZ program is also projected to increase the Mining
local raw materials as a result of the Korean company that has commenced
Footwear has been cut in half from 1994 to 2003, one point two (1.2) to zero
point six (0.6). This decreased is a result of the scaling down of productions
Table 17
Gross Domestic Product by Activity, current prices – contribution to
GDP in percent
Activity Year
1994 1997 2000 2003
Agriculture & Forestry 12.4 12.5 11.1 9.2
Fishing 2.2 2.4 3.7 5.0
Mining & quarrying 0.5 0.5 0.5 0.5
Primary Industries 15.1 15.4 15.4 14.6
5.3.2.3.1 Poverty
The EPZ program does not develop the least developed areas of Belize in
comparison with the more developed areas. The program maximizes the use
and efficiency of the areas with the best factors of production in Belize.
The poverty gap measures the aggregate disparity in the incomes of the poor
compared to the poverty line, which compares the monetary value of the
fulfill its basic needs (Kairi Consultants, 1996). The poverty gap represents
the amount needed to raise the income of all poor individuals to the level of the
The country of Belize is distributed into six (6) districts, Corozal, Orange Walk,
Belize, Cayo, Stann Creek and Toledo. These districts are merged into four
(4) regions, North, Corozal and Orange Walk districts, Central, Belize district,
West, Cayo district, and South, Stann Creek and Toledo. (Figure 8) Using
the poverty gap as a measure of poverty in relation to districts Toledo (south)
has the highest gap, twenty one point eight (21.8), followed by Cayo (west),
twelve point two (12.2), ), Belize, six point seven (6.7), Orange Walk (North),
five point six (5.6), Corozal, five point five (5.5), and Stann Creek, four point
nine (4.9).
Mandani, 1999, argues that EPZ is not a policy instrument that ideally
utilities, workforce, ports and airports that are above average in a country. A
review of the total number of EPZ companies in operation by district and using
views. Toledo and Cayo have high poverty gaps, therefore being the poorest
districts, and have a low number of operating EPZ, three (3) and four (4), in
their area. (Table 13, Figure 14, and Table 18) Belize and Stann Creek
have low poverty gaps, therefore being the richest districts, and have a high
number of operating EPZ, twenty five (25) and seventeen (17), in their area.
(Table 13, Figure 14, and Table 18) The Belize district contains Belize City,
the country’s economic hub with the only international airport, a sea port, best
workforce, and best utilities in the country. Stann Creek contains many
natural resources and infrastructure, fertile land, water supply, paved roads,
and a sea port. While Mandani’s EPZ location view does not hold for Orange
Walk and Corozal, relatively rich districts that are characterized by low levels
the northern region. (Table 13, Figure 14, and Table 18) The northern region
has a high poverty gap, therefore being a poor region, and has a low number
of operating EPZ, four, (4), in its area. (Table 13, Figure 14, and Table
efficiency by being located in the economic centers where the best factors of
The female population is characterized with a high level of poverty than the
male population. (Table 18) The EPZ industries are generally geared toward
5.3.2.4.1 Trade
reveal that the EPZ program accounts for five (5) of the nine (9) headings.
increased from one hundred and four point forty one (104.41) US$ million, fifty
five point six (55.6) percent in 2000 to one hundred and nine point twenty
seven (109.27)US$ million, fifty five point two (59.2) percent in 2002. The
In terms of Marine Exports, which accounted for the largest amount of Major
Domestic Exports in 2002 and 2003, by replacing Sugar and Citrus products
since 2002, EPZ have contributed greatly to diversifying exports away from the
Major Domestic Exports is Papaya, which is the only other sector, apart from
Table 19
Major Domestic Exports, US$ million: 2000 – 2003
twenty four point five seven (24.57) US$ million or sixty nine point 8 (69.8)
percent of the total Marine Exports in 2000. By 2003 this number had risen to
forty five point nine three (45.93) US$ million and eighty three point three
Table 20
Marine Exports, US$ million: 2000 – 2003
Belize’s origin of imports has historically been predominantly from the United
Kingdom and the US. Belize’s imports by origin reflect an increase in imports
from its regional trade partners, Mexico, CARICOM and Central America.
imported approximately ten (10) percent of the economy’s total import from
2000 to 2003.
Table 21
Imports by Origin, US$ million: 2000 – 2003
United States of
America 253.55 237.23 221.36 232.91
Mexico 44.06 43.36 41.07 43.61
United Kingdom 14.05 16.32 16.45 17.64
Other European Union 26.15 20.19 26.20 29.13
Central America 47.01 60.70 87.13 92.41
CARICOM 14.70 21.88 16.08 15.62
Canada 8.06 6.74 8.58 6.93
Other 116.72 110.42 107.63 113.81
Total 524.30 516.84 524.50 552.06
5.3.3.1.1 Employment
one hundred and eighty seven (2,187) people from 1998 to 2003. (Table 22
and Figure 16) From 2000 to 2003 the program’s annual employment is
higher at two thousand four hundred and four (2,404), of which an average of
two thousand two hundred and seventy four (2,274) local employees were
hired and an average of one hundred and thirty (130) foreign workers were
employed. (Table 22 and Figure 16) The total annual employment fluctuates,
(2,000) employees for the period 2000 to 2003. The number of foreign
employees declined from 2000 with a number of one hundred and sixty one
(161) to 2002 with a number of eighty nine (89). (Table 22 and Figure 16)
The number of foreign employees increased in 2003 to one hundred and thirty
four (134), which is below the numbers of 2001 and 2000. (Table 22 and
Table 22
EPZ Annual Employment of Belizeans and Foreigners (1998 – 2003)
Year Employment
Belizeans Foreigners TOTAL
1998 NA NA 1,541
1999 NA NA 1,967
2000 2,325 161 2,486
2001 2,033 136 2,169
2002 2,595 89 2,684
2003 2,140 134 2,274
TOTAL 13,121
Figure 16
EPZ Annual Employment of Belizeans and Foreigners (1998 – 2003)
3000
Employment Numbers
2500
2000 Belizeans
1500 Foreigners
1000 TOTAL
500
0
1998 1999 2000 2001 2002 2003
Year
From 1998 to 2002 the program has employed and average of two point eight
(2.8) percent of the Belizean employed labor force. (Table 23 and Figure 17)
Both the Belizean employed labor force and the EPZ labor force have had an
Figure 17
EPZ Annual Employment and Belize’s Annual Employed Labor Force
(1998-2003)
100,000
Employment Numbers
80,000
EPZ Employment
60,000
0
1998 1999 2000 2001 2002 2003
Year
1998 to 2002. (Table 24 and Figure 18) However, the Belizean employed
approximately twice that of the female workforce. (Table 16 and Figure 15)
Table 24
Belize’s Annual Employed Labor Force and Sex (1998-2002)
Belize Employed
Labor Force by
Sex
Year Male Female
1998 49,265 21,415
1999 50,090 23,255
2000 53,680 24,075
2001 58,546 27,323
2002 58,582 26,138
2003 NA NA
Figure 18
Belize’s Annual Employed Labor Force and Sex (1998-2002)
70000
Employment Numbe
60000
50000
40000 Male
30000 Female
20000
10000
0
Year 1998 1999 2000 2001 2002 2003
Year
Source: Central Statistical Office of Belize (2004)
Belize’s employed labor force from 1998 to 2002 was concentrated in the
Belize district followed by Cayo, Orange Walk, Corozal, Stann Creek and
Table 25
Location and Belize’s Employed Labor Force (1998-2002)
Year Corozal Orange Walk Belize Cayo Stann Creek Toledo TOTAL
2003 NA NA NA NA NA NA NA
Figure 19
Location and Belize’s Employed Labor Force (1998-2002)
Belize employed Labour Force by District
35000
Employment Numbers
30000 Year
Corozal
25000
Orange Walk
20000
Belize
15000
Cayo
10000
Stann Creek
5000 Toledo
0
1998 1999 2000 2001 2002
Year
Table 26
Employment of EPZ in 6 Countries
% of total
Year Country Employment workforce
1993 Ireland 4,268 0.3
1985 Taiwan 76,924 1
1982 Malaysia 70,885 1.6
1982 Philippines 25,610 0.1
1981 SriLanka 17,813 0.3
2003 Belize 2,684 3.2
part of the economy’s employed labor force, the program does provide a
constant level of annual employment on which other areas of the economy can
the annual two point eight (2.8) percent of the economy’s employment that the
southern district of Toledo and its inexistence in Orange Walk reflects again
that the program should not seek to attain regional development objectives,
but should rather seek to effectively and efficiently utilize developed centers of
5.3.3.2.1 Investment
which was followed by a large drop in 2000. (Table 27 and Figure 20) From
2000 to 2002 the total investment has been steadily increasing, which was
Table 27
EPZ Investment (1998-2003)
Total
Investment
Investment
Year (US$)
1998 30,034,639
1999 615,129,614
2000 95,725,576
2001 153,527,590
2002 225,716,508
2003 30,699,159
TOTAL 1,150,833,086
Figure 20
EPZ Investment (1998-2003)
700,000,000
600,000,000
Total Investment
500,000,000
400,000,000
Investment (US$)
300,000,000
200,000,000
100,000,000
0
1998 1999 2000 2001 2002 2003
Year
Figure 21
EPZ and National Accounts Investment as a Percentage of GDP, Local
Currency constant Prices
90
80
70
60 EPZ
% of GDP
percent of GDP, the data reflects that EPZ investment is significant. The
instability.
reflect fluctuations. (Table 29 and Figure 22) The highest annual foreign
exchange earnings were experienced in the early years of the program, 1998.
(Table 29 and Figure 22) The trade balance was a deficit in two (2) of the last
four years. However over the entire period the cumulative trade balances was
a surplus.
Table 29
EPZ Balance of Trade (2000-2003)
EPZ EPZ EPZ
Year Imports Exports Trade
Balance
2000 50.28 88.8 38.52
2001 43.51 25.02 -18.49
2002 40.01 73.37 33.36
2003 65.27 58.16 -7.11
2000 -
2003 199.07 245.35 46.28
Figure 22
EPZ Balance of Trade (2000-2003)
300
250
200
US$ million
EPZ Imports
150
EPZ Exports
100 EPZ Trade Balance
50
0
2000 2001 2002 2003 2000 -
-50
2003
Year
relatively lower than its export as a percentage of the economy’s export. (Table
Figure 23
EPZ Imports and Belize Gross Imports (2000 – 2003)
2500
2000
US $million
1500
EPZ Imports
Belize Imports
1000
500
0
2000 2001 2002 2003 2000 -
2003
Year
Table 31
EPZ Exports and Belize Domestic Exports (2000 – 2003)
Year EPZ Belize % EPZ
Exports Exports
2000 88.8 210.39 42
2001 25.02 162.73 15
2002 73.37 158.34 46
2003 58.16 192.32 30
2000 -
2003 245.35 723.78 34
Figure 24
EPZ Exports and Belize Domestic Exports (2000 – 2003)
800
700
600
US $million
500
EPZ Exports
400
Belize Exports
300
200
100
0
2000 2001 2002 2003 2000 -
2003
Year
EPZ’s employment has been constant and in comparison with countries that
have had EPZ programs for many years, the annual employment figures as a
women.
The data describes that the economy’s exports is highly depended on the EPZ
program’s exports.
Training)
Some enterprise training takes place in EPZ. Training for factory operators is
workers in EPZ receive more substantial training but this is typically restricted
Table 32
Training for Employees in EPZ
Industry Training Provided
Aquaculture Health and safety issues; Computer certification;
Technical training on farm; Pond management; Overseas
training on mariculture techniques.
Agro-Processing Occupational safety and health; Dehydration technology;
Laboratory analysis; Product quality testing; Pulp recovery
and oil extraction; Electrical hazards and machines
guarding; Evaporator installation and dismantling; Lab
testing procedures; Undergraduate degree in Business;
Graduate degree in Business Administration; Good
manufacturing practices.
Manufacturing On the job machinery usage; Lathe operator; Operation of
equipment; Engineering.
Other Cashier; Security; Slot attendants, Dealers
Data Processing On the job data processing
organizational skills that are transferred to the economy, hence the worker
may be indirectly contributing to the adoption sector (Sinclair, 2001). The
cultures, and utilize the positives from each other and blend their knowledge to
employment, sales, value of raw material used and investment for 2003 will be
variables of industries, ownership, EPZ type, EPZ location and year of EPZ
contribute significantly to the EPZ program, the factors in the EPZ program
that have a t-ratio greater than 1.96. This indicated that the variable is
Agro-Processing/
Industry Constant 74.25 1.64 1.75 0.59
Aquaculture -47.25 -0.81 1.92 0.50
Manufacturing 72.50 1.13 3.00 0.72
Special EPZ/
Type Constant 72.00 2.56 3.46 2.15
EPZ Business 38.00 0.36 -0.46 -0.08
Belize/
Location Constant 152.67 2.55 0.67 0.19
Corozal -42.67 -0.36 2.33 0.34
Cayo -95.17 -1.00 7.33 1.34
Stann Creek -103.67 -1.45 3.19 0.77
Toledo -132.67 -1.11 -0.67 -0.10
Year of
Designation 2000/Constant 76.40 3.54 6.80 2.32
1998 -38.07 -1.08 -3.80 -0.79
1999 69.60 1.32 -6.80 -0.95
1995 285.60 5.40 -6.80 -0.95
2001 -61.90 -1.53 -5.30 -0.97
2002 -67.40 -1.27 -4.80 -0.67
2003 -73.40 -1.39 -6.80 -0.95
5.3.3.5.3.1 Employment
Special EPZ, Belize district and companies designated in 1995 and 2000 were
Table 34
Sales Regression Results
Independent
Variable Dependent Variables
Local Sales Foreign Sales
Year of
Designation 2000/Constant 618332.00 1.60 3622830.80 1.97
1998 -618332.00 -0.98 -2190615.80 -0.73
1999 2102234.00 2.22 9580824.20 2.12
1995 -618332.00 -0.65 10171406.20 2.25
2001 -618332.00 -0.85 -3438053.80 -1.00
2002 -617802.00 -0.65 -3336424.80 -0.74
2003 -618082.00 -0.65 -3586830.80 -0.79
5.3.3.5.4.1 Sales
Independent
Variable Constant/Intercept Dependent Variables
Year of
Designation 2000/Constant 2716922.40 1.32 9446221.40 2.44
1998 -2064597.40 -0.61 -7100556.40 -1.12
1999 -1645788.40 -0.33 -7475087.40 -0.79
1995 -2437562.40 -0.48 -7266861.40 -0.77
2001 1978088.10 0.51 -809981.40 -0.11
2002 -2501022.40 -0.50 -8207321.40 -0.87
2003 -2616922.40 -0.52 -9346221.40 -0.99
5.3.3.5.5.1 Investment
The Manufacturing industry, Asian investors, Cayo and Toledo districts were
t
Coefficient ratio Coefficient t ratio
Year of
Designation 2000/Constant 2433195.20 1.85 330614.80 2.60
1998 -2005408.53 -0.93 -120879.13 -0.58
1999 -1743049.20 -0.54 7748777.20 24.84
1995 -2433195.20 -0.75 4771532.20 15.29
2001 -2263323.70 -0.92 -307093.30 -1.29
2002 -2280154.20 -0.71 -218725.80 -0.70
2003 -2413195.20 -0.75 -280614 -0.90
5.3.3.5.6.1 Raw Material Usage
5.3.3.5.7.2 Industry
level with Agro-processing being the constant in the utilization of local raw
Belizean companies being the constant in the amount of local sales, foreign
exchange earnings, and the usage of local raw materials in 2003. Asian
employment in 2003.
The EPZ Businesses were significant at a 5% level with Special EPZ being the
Special EPZ being the constant in local and foreign employment, and foreign
local sales, local and imported raw material usage, and 2003 investment.
local employment for 2003. Cayo district was significant at a 5% level with
Belize being the constant in 2003 investment and total investment. Toledo
district was significant at a 5% level with Belize being the constant in 2003
investment. Cayo district was significant at a 5% level with Belize being the
imported raw material usage and total investment in 2003. There was no
annual designation significance in local raw material usage and 2003
investment.
Table 37
Summary of Regression Analysis for EPZ 2003 Performance Data
(Employment and Sales)
Independent
Variables Dependent Variables
Foreign
Local Foreign Exchange
Employment Employment Local Sales Earnings
Table 38
Summary of Regression Analysis for EPZ 2003 Performance Data (Raw
Material Usage and Investment)
Independent
Variables Dependent Variables
Local Raw Material Imported Raw Total
Usage Material Usage 2003 Investment Investment
5.3.3.5.8.2 Industry
level with Agro-processing being the constant in the utilization of local raw
Agro-Processing was important in terms of sale, both local and foreign and
Belizean companies being the constant in the amount of local sales, foreign
exchange earnings, and the usage of local raw materials in 2003. Asian
employment in 2003.
Belizean Investors were important in terms of sale, both local and foreign and
The EPZ Businesses were significant at a 5% level with Special EPZ being the
Special EPZ being the constant in local and foreign employment, and foreign
exchange earnings in 2003. No types of EPZ were significant in reference to
local sales, local and imported raw material usage, and 2003 investment.
Special EPZ were important in terms of employment, both local and foreign,
foreign exchange earnings, and total investment. EPZ Businesses were also
Belize district was significant at a 5% level with Belize being the constant in
local employment for 2003. Cayo district was significant at a 5% level with
Belize being the constant in 2003 investment and total investment. Toledo
district was significant at a 5% level with Belize being the constant in 2003
investment. Cayo district was significant at a 5% level with Belize being the
Belize district was important in terms of local employment. Cayo district was
imported raw material usage and total investment in 2003. There was no
investment.
designated in 1999 were important in terms of local sales, foreign sales, and