Charter city (economic development)

From Wikipedia, the free encyclopedia
For charter cities as a form of local government in many U.S. states, see Charter city. For city status conferred by Royal Charter in the United Kingdom, see City status in the United Kingdom.

A charter city is a type of city in which a guarantor from a developed country would create a city within a developing host country. The guarantor would administer the region, with the power to create their own laws, judiciary, and immigration policy outside of the control of the host country.[1]

Charter cities were proposed by economist Paul Romer, in a 2009 TED talk.[2]

According to Romer, international charter cities would be a benefit to citizens by giving them an additional option about what system of economic policies they want to live under. In his vision, charter cities would adopt more pro-business policies than the host county, including lower taxes, less regulations, and protection of property rights, which would encourage international investment. Romer gives Hong Kong as an example, which he argues encouraged economic growth.[3][4]

Examples[]

After a meeting of Romer with president Marc Ravalomanana of Madagascar in 2008, Ravalomanana considered the idea of creating two charter cities. However, the plan was scrapped when the political leadership that supported the idea was removed from power.[5]

In 2011, the government of Honduras considered creating a charter city, though without the oversight of a third-party government. Romer served as chair of a "transparency committee", but resigned in September 2012 when the Honduran government agency responsible for the project signed agreements with international developers without knowledge of the committee.[6] In October 2012 the Honduran Supreme Court declared charter cities to be unconstitutional because the laws of Honduras would not be applicable there.[1][7] [needs update]

In 2018, Ledger Atlas, a cryptocurrency company invested in by Tim Draper, proposed a cryptocurrency-based Special Economic Zone in Papua New Guinea. A memorandum of understanding established Ledger Atlas as the governing entity, able to control migration, enact laws and issue passports. The proposal did not move forward, however.[8]

El Salvador president Nayib Bukele announced plans for a Bitcoin-based charter city in November 2021.[9]

See also[]

References[]

  1. ^ a b "Honduran supreme court rejects 'model cities' idea". Yahoo News. 18 October 2012.
  2. ^ Paul Romer about Charter Cities
  3. ^ Sebastian Mallaby (July–August 2010). "The Politically Incorrect Guide to Ending Poverty". The Atlantic.
  4. ^ Concept Archived May 11, 2011, at the Wayback Machine from chartercities.org
  5. ^ "Aid Watch". Development Research Institute. Retrieved 2020-03-29.
  6. ^ "Plan for Charter City to Fight Honduras Poverty Loses Its Initiator". New York Times. 30 September 2012.
  7. ^ Brian Doherty (June 2013). "The Blank Slate State". reason.com. Retrieved 2013-05-16.
  8. ^ Jutel, Oliver (18 February 2021). "Blockchain imperialism in the Pacific". Big Data & Society. 8. doi:10.1177/2053951720985249. S2CID 233898753.
  9. ^ https://www.bloomberg.com/news/articles/2021-11-21/el-salvador-plans-1b-in-tokenized-bitcoin-bonds-bukele-says

External links[]

Retrieved from ""