Alexander William Salter, Assistant Professor of Economics in the Rawls College of Business, and the Comparative Economics Research Fellow with the Free Market Institute, at Texas Tech University, writes on political entrepreneurship.
I contribute to the literature on political entrepreneurship by analyzing the role of the political entrepreneur in Frederick the Great’s Anti-Machiavel. Frederick the Great (Frederick II of Prussia) is best known for turning Prussia into an international power during the mid- to late-18th century. His perspective on governance contains many valuable insights into the nature of political entrepreneurship, the institutions within which it occurs, and its effects on material prosperity. I detail key points from Anti-Machiavel that can advance scholarship on political entrepreneurship, and conclude by discussing how Frederick’s insights into political entrepreneurship can be put to work.Read More
Alexander William Salter, Assistant Professor of Economics in the Rawls College of Business, and the Comparative Economics Research Fellow with the Free Market Institute, at Texas Tech University, writes on sovereign entrepreneurship.
I develop a theory of sovereign entrepreneurship, which is a special kind of political entrepreneurship. Sovereignty is rooted in self-enforced exchange of political property rights. Sovereign entrepreneurship is the creative employment of political property rights to advance a plan. Building on several literatures in political economy and the managerial-organizational sciences, I show how sovereign entrepreneurship is related to ownership and residual judgment rights to government activities. I illustrate the theory by using it to reinterpret the rise of modern states as the entrepreneurial reassembly of ownership rights and control rights within government. I conclude by discussing future avenues of research on sovereign entrepreneurship.Read More
Democratic Compliance: A Charter City’s Obligations Under International Law: The Case of the Honduran ZEDE Regime
The concept of Charter Cities was first introduced in the Republic of Honduras as a means for rapidly accelerating economic growth and poverty reduction by creating a special jurisdiction. However, the concept faced multiple legal challenges on constitutional grounds. In 2014, the ZEDE regime was reviewed by a newly elected Supreme Court, which ruled favorably on the project. However, one the strongest challenges raised against the regime, that of characterizing it as undemocratic by nature, has not been properly addressed. This paper examines the challenge raised on the democratic legitimacy of ZEDEs, and takes into account the non-delegation clause of the Honduran Constitution. It concludes that neither the Technical Secretary nor CAMP may legislate or levy taxes, and in order for ZEDEs to exercise such powers its governance structure must provide for democratic or participatory mechanisms through which its inhabitants may exert legislative power through representation.Read More
As former British Prime Minister Gordon Brown once famously quipped, “In establishing rule of law, the first five centuries are the hardest.” His dictum applies to more than just rule of law. Governance, the process of creating and applying rules and norms, including rule of law, to a social organization, is at least as difficult to establish as the rule of law and also the most important determinant of human flourishing.
Discussion about governance typically takes for granted the jurisdiction within which governance occurs. But this is a strong and potentially paralyzing assumption. It is time to rethink governance reforms. They should be considered not only for the set of reforms, but also for the territories they apply to.
In this paper, I introduce the idea of innovative governance, encompassing numerous forms of political decentralization including charter cities, special economic zones, seasteading, and more.Read More