Make Honduras Great
We have a new working paper by Jorge Colindres and myself (Mark Lutter) on how charter cities can make Honduras great. We propose a practical plan for implementing charter cities to help develop Honduras and stem the refugee crisis. Below is the abstract
We propose building charter cities to help develop Honduras and alleviate the refugee crisis. Charter cities are large real estate developments under a new jurisdiction with a blank slate, or close to it, in commercial law. The new jurisdiction allows the charter city to adopt the best practices in governance, attracting investment, creating jobs, and stimulating economic growth. Singapore, Hong Kong, and Dubai were able to become world class cities due in large part to their governance, the same opportunity exists in Honduras.
Legislation which allows the creation of charter cities, known as Zones for Employment and Economic Development (ZEDEs), exists in Honduras. However, because of the complexity of creating a new legal system, no charter city has been publicly approved. Our goal is to demystify the challenges of creating a charter city such that it can become part of the strategy of developing Honduras. We propose a plan and timeline which demonstrates the cost effectiveness of charter cities as a policy strategy for poverty alleviation and development.
The paper is split into two sections. First, we review the migrant crisis, the failed solutions, and the governance challenges of Honduras. Second, we review the ZEDE legislation, offering a plan for developing a ZEDE. The appendix has additional information regarding models for the real estate aspect of a charter city.