This is refreshing news, in a world of governments, here is a chance to prove the viability of Libertarian ideas. Honduras plans to open “free cities”.
From the Economist, (bold emphasis mine) [hat tip Bob Wenzel]
Now, for the first time, libertarians have a real chance to implement their ideas. In addition to a big special development region, the Honduran government intends to approve two smaller zones. And two libertarian-leaning start-ups have already signed a preliminary memorandum of understanding with the Honduran government to develop them.
One firm goes by the name of Future Cities Development Corporation. It was co-founded by Patri Friedman, a grandson of Milton Friedman, a Nobel laureate in economics, and until recently executive director of the Seasteading Institute, a group producing research on how to build ocean-based communes. The other is called Grupo Ciudades Libres (Free Cities Group) and is the brainchild of Michael Strong and Kevin Lyons, two entrepreneurs and libertarian activists.
Both share a purpose: to build “free cities”. Last April all three spoke at a conference organised by Universidad Francisco Marroquín, a libertarian outfit in Guatemala. In September they and Giancarlo Ibárgüen, the university’s president, launched the Free Cities Institute, a think-tank, to foster the cause.
As so often with enthusiasts, divisions within the cause run deep. The two firms hail from different parts of the libertarian spectrum. Mr Friedman is an outspoken critic of democracy. It is “ill-suited for a libertarian state”, he wrote in an essay in 2009—because it is “rigged against libertarians” (they would always lose) and inefficient. Rather than giving its citizens a voice, he argues, they should be free to exit; cities should compete for them by offering the best services.
The second firm’s backers appear to be less radical. A founder of several charter schools, Mr Strong is now the force behind FLOW, a movement that claims to combine libertarian thinking “with love, compassion, social and environmental consciousness”, says its website. He too prefers exit over voice (meaning that he thinks that leaving and joining are better constraints on executive power than the ballot box). But he also believes that democratic consent is needed in certain areas, such as criminal justice. His goal in Honduras is less to implement libertarian ideals than to reduce poverty and to speed up economic development.
Some in the Honduran government have libertarian leanings, which is one reason why the authorities have moved so quickly. But when the master developers for the new zones are selected next year, strong political credentials will not be enough—and may even prove to be a drawback. Mr Friedman is stressing a difference between his political beliefs and his firm. “Ideology makes bad business,” he says, adding that Future Cities Development wants to focus on the needs of the people who live in the city.
Yet the biggest hurdle for the libertarian start-ups may be that the transparency commission, which will oversee the development regions, is unlikely to give them free rein. The “constitutional statute” for the development zones, which the Honduran national congress passed in August, does not leave much wiggle room in key areas, not least when it comes to democracy: ultimately their citizens will vote.
While I applaud the idea, I have some reservations.
“Free cities” will remain subject to the politics of Honduras. At the moment, free cities may thrive where “Some in the Honduran government have libertarian leanings”. But since the nature of politics is one of oscillation, then a change in regime could risk undermining the project.
[As an aside, to learn about “libertarian leaning” officials in Honduras is good news enough. Slowly but surely the classical liberal-libertarian creed seem to be percolating into the world and empowering some to get enough political influence to attempt to shape policies in the direction of the free market. Certainly signs of times]
Besides, success from such experiment will ripple into the world, and perhaps incite revolts and topple governments already encumbered with welfare crisis. This is something that socialists, politicians and their cronies won’t allow to happen, so one can’t discount massive efforts to conduct sabotage operations through various covert means such as infiltration.
In my view, the best “free city” model will emerge spontaneously out of the remnants of the collapsed welfare based nation states sometime soon.
In the meantime, the libertarian battle will remain with spreading freedom through education.
Yet one of the best reforms present day governments can do would be to allow people the freedom to vote with our feet or the freedom to exit.
Doing so will allow for tighter competition among nations. People will gravitate to nations where they would be treated best or where they think the type of governance fits them.
Of course, doing so translates to less tax revenues and less political control. So this brings us back to square one—the natural resistance to change by the beneficiaries of the incumbent political system.
Nevertheless, I wish the “free cities” project all the best. Perhaps I could pay them a visit soon.
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