Economics Explored

What’s the Future for Charter Cities after the Honduran ZEDE controversy? w/ Jeffrey Mason, Charter Cities Institute - EP234

Episode Summary

In this episode, we delve into the controversy surrounding the Prospera charter city in Honduras, which has embraced libertarian principles and adopted Bitcoin as legal tender and a unit of account. The city is currently embroiled in a legal battle with the Honduran government. Gene asks Jeffrey Mason, from Charter Cities Institute, what it all means for the future of charter cities. Jeffrey provides some good examples of how charter cities still have a lot of potential, and he talks about projects CCI is involved in in Africa, particularly in Zanzibar. Tune in to gain insights into the intersection of governance, economics, and innovation in the context of charter cities.

Episode Notes

In this episode, we delve into the controversy surrounding the Prospera charter city in Honduras, which has embraced libertarian principles and adopted Bitcoin as legal tender and a unit of account. The city is currently embroiled in a legal battle with the Honduran government. Gene asks Jeffrey Mason, from Charter Cities Institute, what it all means for the future of charter cities. Jeffrey provides some good examples of how charter cities still have a lot of potential, and he talks about projects CCI is involved in in Africa, particularly in Zanzibar. Tune in to gain insights into the intersection of governance, economics, and innovation in the context of charter cities.

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About this episode’s guest: Jeffrey Mason, Head of Research, Charter Cities Institute 

Jeffrey joined CCI as a Researcher in 2019. His research interests include urban economics, structural transformation, special economic zones, and technology ecosystems. He has worked on policy advisory projects in Nigeria, Tanzania, Zambia, and Honduras, among other countries. Prior to joining the Charter Cities Institute, Jeffrey worked as an MA Fellow at the Mercatus Center at George Mason University. He holds a BA in economics from the University of Maryland and an MA in economics from George Mason University. His writing has been featured in publications including City Journal, Works in Progress, Investment Monitor, Quartz Africa, and The American Mind.

What’s covered in EP234

• Introduction. (0:00)
• Honduran ZEDEs: zones for employment and economic development. (4:12)
• Honduran ZEDEs and impacts on local communities. (9:41)
• Investor-state dispute settlement mechanisms. (15:15)
• Charter cities and their potential to improve governance and economic growth. (20:37)
• Charter cities and urban development in Zanzibar. (26:15)
• Affordable housing development in Zanzibar, Tanzania. (30:56)
• Urban development and new city projects. (39:27)

Takeaways

1. The controversy surrounding Prospera in Honduras highlights the risks and uncertainties involved in charter city projects.
2. The concept of charter cities is evolving, with a growing emphasis on affordability, local engagement, and sustainable development to ensure their long-term success.
3. Legal and political stability, along with government partnerships, are crucial for the success of charter cities, as demonstrated by the contrasting experiences of Prospera and the Zanzibar project, Fumba Town, that Charter Cities Institute is involved in.

Links relevant to the conversation

• Jeffrey’s bio: https://chartercitiesinstitute.org/people/jeffrey-mason/
• Ryan Grim’s report at the Intercept “Honduras Ratchets Up Battle With Crypto-Libertarian Investors, Rejects World Bank Court”: https://theintercept.com/2024/03/19/honduras-crypto-investors-world-bank-prospera/
• Counter Points report “Honduras GOES TO WAR With Crypto Bros”, 
• CCI's involvement with Fumba Town: https://chartercitiesinstitute.org/fumba-town/
• Fumba Town: https://chartercitiesinstitute.org/fumba-town/
• EP147 with Kurtis Lockhart on charter cities: https://economicsexplored.com/2022/07/11/charter-cities-a-public-private-partnership-ppp-model-w-kurtis-lockhart-ep147/

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Thanks to Obsidian Productions for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. 

Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.