9/06/2012

Three completely privately run cities being set up in Honduras

I assume that this is the project that Patri Friedman (David Friedman's son) is involved with.  It is presumably a lot cheaper than the old sea steading concept, but it does run the risk that the Honduras government could change and not honor its agreement (though I assume that the private investors feel that they have an ironclad agreement and some type of collateral).  If competition can attract people from the rest of the country to live there, the project could succeed even if they don't get people from the rest of the world to move there.
TEGUCIGALPA, Honduras (AP) -- Investors can begin construction in six months on three privately run cities in Honduras that will have their own police, laws, government and tax systems now that the government has signed a memorandum of agreement approving the project. 
An international group of investors and government representatives signed the memorandum Tuesday for the project that some say will bring badly needed economic growth to this small Central American country and that at least one detractor describes as "a catastrophe." 
The project's aim is to strengthen Honduras' weak government and failing infrastructure, overwhelmed by corruption, drug-related crime and lingering political instability after a 2009 coup. . . .

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