*23-

Meadco's border industry program was established in 1964, but took off only after that country's masive 1982 devluation; by 1987 Mexaco's maquiladora program employed almost 400,000 people and accounted for 5.7% of export revenues.4 In Tunisia, a 1972 reform permitting bonded factories laid the foundation for a 14% annual real increase in manufactures exports over the next decade. However, the Mexican, Jamaican, Philippine and Tunisian arrangements operate essentially as enclaves isolated from manufacturers producing for the domestic mai ket.<sup>4</sup> ' Table 8 points to rather more variation among countries in experience with bonded warehouse and duty/tax drawback or exemption schemes (most of the schemes to support indirect exports are of too recent duration for useful information on implementation to have emerged; a priori, their experience is likely to correspond closely with -- or be somewhat worse than -- the broader experience with drawback or exemption schemes). The Philippines bonded warehoue scheme appears to have worked well, especially for garments and textiles firms who in 1985 channelled $619 million of exports through these arrangements; by contrast, drawback and exemption schemes became mired in exzessive and discretionary bureaucratic procedures, and afforded firms only $12 million in customs and tax rebates in 1985.42 Similarly, bonded warehouses for Bangladeshi garment exporters have operated successfully; although the Bangladeshi government continues to work to improve performance," experience with other instruments tnus far has been less satisfactory. Kenya's bonded manufacturing scheme has not got off the ground, mired in an administrative swamp throughout the Five years since It first was announced; similarly, only forty companies regularly take advantage of Kenya's duty drawback scheme, even though it has been in place for over ten years.4 Among the remaining countries, in Thailand implementation of drawback and exemption schemes appears to have improved continually over time, with the ratio between But note that according to data from The World Bank, Mexico: Trade Policy Reform and Economic Adiustment. August 23, 1988 p. 55, maquila exports were only one-sixth as large as total Mexican manufactures exports; Joseph Grunwald, 'Technology Transfer and Assembly Industries' draft May 1989 evaluates quite positively the developmental contribution to Mexico of the maquila factories.

**41** Although the Mauritius scheme is also solely for 100% exporters, it is difficult to describe as an enclave an arrangement that employs 20% of a nation's work force.

a The World Bank, The PhiligRines: Issues and Policies in the Industrial Sector. It is interesting to note that the administration of bonded warehouses for garments and textile (but not other) exports is handled by the Garments and Textiles Export Board, an agency independent of the Philippines Bureau of Customs. The garment and textile facility handled almost three times the value of imports, and five times the number of firms as did the Customs bureau.

43 The World Bank, Bangladesh: Export Development Project. Report Number 7368-BD, March 22, 1989, pp. 6-8.

i The World Bank, Industrial Sector Adiustment Credit: President's Re2ort May 24, 1988; also The World Bank, Kenya: Industrial Sector Policies for Investment and Exort Growth. Report Number 6711-IKE, June 30, 1987, p.38.