A small, incremental degree of privatization. I have no idea where you get "lawless" or "fiefdom". These zones are requested, authorized, regulated, and monitored by a nation. Do you think the 3,000 SEZs in the world are lawless fiefdoms?
This is strangely hyperbolic language for what's basically a new kind of free trade zone. Would make a good movie plot, though, you've got a grand imagination!