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Judi Lynn

(160,656 posts)
Wed Sep 5, 2012, 04:13 AM Sep 2012

Honduras signs deal to create private cities

Honduras signs deal to create private cities
Alberto Arce, The Associated Press, Tegucigalpa, Honduras
Wed, September 05 2012, 2:54 PM

The government of Honduras has signed a deal with private investors for the construction of three privately run cities with their own legal and tax systems.

The memorandum of agreement signed Tuesday is part of a controversial experiment meant to bring badly needed economic growth to this small Central American country. Its weak government and failing infrastructure are being overwhelmed by corruption, drug-linked crime and lingering instability from a 2009 political coup.

Both sides hope to begin work on the first city in coming weeks and say the project could create 5,000 jobs over the next six months.

The project is opposed by civil society groups including indigenous Garifuna people who say they don't want their land to be used for the project. The developers say the fears are unjustified.

http://www.thejakartapost.com/news/2012/09/05/honduras-signs-deal-create-private-cities.html

(Short article, no more at link.)

5 replies = new reply since forum marked as read
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Honduras signs deal to create private cities (Original Post) Judi Lynn Sep 2012 OP
Fordlandia take 2 finecraft Sep 2012 #1
Next for Honduras: "charter city" neocolonialism? Judi Lynn Sep 2012 #2
Honduras authorises privateers' playgrounds Judi Lynn Sep 2012 #3
Money laundering comes to mind flamingdem Sep 2012 #4
Disgusting eridani Sep 2012 #5

Judi Lynn

(160,656 posts)
2. Next for Honduras: "charter city" neocolonialism?
Wed Sep 5, 2012, 02:01 PM
Sep 2012

Next for Honduras: "charter city" neocolonialism?
Submitted by Bill Weinberg on Sat, 06/09/2012 - 21:01 Central America Theater

A startling article in the New York Times May 8 noted that Honduras in late 2010 passed a constitutional amendment drawn up by the administration of President Porfirio Lobo that allows the creation of a separately ruled "Special Development Region" within the country—where the national state would have limited, if any, authority. The article, entitled "Who Wants to Buy Honduras?," portrays a vision for privately run islands of order and security amid the squalor and violence of the impecunious Central American country. This was apparently the brainchild of a young Lobo aide, Octavio Rubén Sánchez Barrientos, who was taken with the ideas of US economist Paul Romer, theorist of "economic zones founded on the land of poor countries but governed with the legal and political system of, often, rich ones."

Citing accounts in the Honduran press, the Honduras Culture and Politics blog notes that the new measure gives "the government the right to expropriate any contiguous region of land for the use of 'Special Administrative Regions' which will be owned in full by the government, but have their own fully autonomous court system, not answerable to the Supreme Court."

More:
http://ww4report.com/node/11150

[center]~ ~ ~[/center]
Partitioning Honduras: The advent of charter cities

A proposal to build 'quasi-independent city-states' appears to be an affront to democracy and civic life.
Last Modified: 14 Jul 2012 19:50

At the end of 2011, an article appeared in The Economist proclaiming "an ambitious development project aim[ing] to pull a Central American nation out of its economic misery".

The project in question: Charter cities. The nation: Honduras.

The article explains:


"In a nutshell, the Honduran government wants to create what amounts to internal start-ups - quasi-independent city-states that begin with a clean slate and are then overseen by outside experts. They will have their own government, write their own laws, manage their own currency and, eventually, hold their own elections."

The term "eventually" should raise some warning flags. According to US economist Paul Romer, whose brainchild the charter city concept is, the apparent affront to democracy is not actually problematic because the cities will be inhabited entirely by migrants who have taken up residence of their own volition. The Economist offers an analogy:

"Migration to Britain gives the legal system there legitimacy in the eyes of those who move there, even if they cannot vote. If the English legal system were enforced on the same person in his home country, Mr Romer notes, that would be colonial rule."

More:
http://www.aljazeera.com/indepth/opinion/2012/07/2012711121224166933.html

[center]~ ~ ~[/center]
Honduran charter cities trample on democracy
By Suzy Dean
The Foreign Desk
Monday, 16 January 2012 at 4:32 pm

A worrying development in Honduras echoes anti-democratic trends in Italy and Greece, whereby technocracy is usurping popular rule.

Honduras has long been one of the poorest countries in the western hemisphere. A year ago, the National Party, with support from the opposition Liberal Party, decided to form the Región Especial de Desarrollo (RED), or Special Development Region. These would encourage domestic and foreign investment, and in turn jobs, homes and an environment in which the public will be able to enjoy a better standard of living.

Last month, President Lobo of Honduras established a Transparency Commission of five experts and “influential supporters in the broad community of people concerned with economic development”. This Commission will act as the guardian body of the proposed new cities, and is tasked primarily with establishing a procedure for receiving and reviewing development proposals from would-be investors, as well as ensuring that business dealings related to the RED remain open, competitive, and free of corruption.

What sets the REDs apart from other charter cities is the belief that in order for the cities to thrive they must suspend democracy. The unelected Commission will govern the new city, until they decide the population is ‘ready’ for democracy; only then will new local councils be set up. The logic goes that if a city can be built in an economically underdeveloped country, but with highly-developed rules and governance, then citizens can then choose to live there – and live better for opting to do so. So goes the thesis of Paul Romer, economist and architect of RED.

More:
http://blogs.independent.co.uk/2012/01/16/honduran-charter-cities-trample-on-democracy/

Judi Lynn

(160,656 posts)
3. Honduras authorises privateers' playgrounds
Wed Sep 5, 2012, 03:09 PM
Sep 2012

Honduras authorises privateers' playgrounds
Wednesday 05 September 2012

Honduras has approved plans to allow private financiers to build three cities within its borders that will operate as mini states with their own legal and tax systems.

Landowning President Porfirio Lobo's government said on Tuesday that construction would begin in coming weeks.

Mr Lobo's right-wing administration rode to power amid a electoral boycott and a string of disappearances and arrests following the 2009 coup against reforming predecessor Manuel Zelaya.

Honduras has long been a playground for firms seeking to benefit from low wages and low taxes.

The new Special Development Regions (Reds) have been described by one of their architects as "public-privatised states within a state."

More:
http://www.morningstaronline.co.uk/news/content/view/full/123533

flamingdem

(39,335 posts)
4. Money laundering comes to mind
Wed Sep 5, 2012, 04:04 PM
Sep 2012

The oversight will be the usual crooks and hiding things will be easier in contained cities.

eridani

(51,907 posts)
5. Disgusting
Thu Sep 6, 2012, 08:02 PM
Sep 2012

There's also a Common Dreams article

http://www.commondreams.org/headline/2012/09/06-6

What an official of the rightwing government of Honduras is calling the "most important project in half a century," critics of the neoliberal plan to build private cities in the Central American nation are calling a "catastrophe" and argue that so-called "chartered cities" would violate the rights of all Hondurans, with particularly negative impacts for the nation's indigenous population.

The president of Honduras, Porfirio Lobo, who is said to have visited Hong Kong, Singapore and Dubai to look at possible models. (Photograph: Orlando Sierra/AFP/Getty Images) President Porfirio Lobo—who came to power in a military coup in 2009—has fully endorsed the proposals to create privately-funded "charter cities" as a way to attract foreign investment to his nation. Details remain elusive, but the experimental cities would be modeled on independently-governed and profit-driven business center cities, so-called "free trade zones" like Dubai or Hong Kong, but would be built virtually from scratch on lands to be determined by the government.

Inspired by US economist advisers—namely US economist Paul Romer, a graduate of the University of Chicago school of economics and currently a professor at the Stern School of Business at NYU—the cities would operate outside the control of the regular Honduran government and have "their own police, laws, government and tax systems."

Details of the plan remain murky, but the government has already held high-level meetings with possible private investors and the Associated Press reports that the MGK investment group has already promised $15 million to begin construction on the first proposed city.

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