The popularity of Special Economic Zones (SEZs) remains strong in the second decade of the 21st century in spite of the progress over the past decade in trade liberalization and deregulation, in building institutions and in improving the business environment. Export Processing Zones (EPZs) and SEZs were instruments of choice in the latter third of the 20th century for economies with closed and tightly regulated markets and weak institutions. Creating these islands was viewed as a means of exploring the viability of a more open regime and of the institutions needed to make it work. Although many economies are now cognizant of the advantages accruing from deregulation and liberalized trade, they still face opposition from entrenched domestic interests who stand to lose. Hence, policy makers continue to rely on SEZs to bolster development and to test the edge of new initiatives as with the greening of cities and creation of logistics hubs.