Próspera
Próspera | |
|---|---|
  Próspera | |
| Coordinates: 16°22′N 86°28′W / 16.367°N 86.467°W | |
| Country |  Honduras |
| Department | Bay Islands |
Próspera is a private city and special economic zone on the island of Roatán in the Central American state of Honduras. The city is an autonomous zone with its own fiscal, regulatory, and legal architecture.[1] The project is led by Honduras Próspera Inc., which itself is funded by venture capitalists and has a veto vote in Próspera's governing council.
Overview
[edit]Próspera is a semi-autonomous city established under Honduran Zone for Employment and Economic Development (ZEDE) laws, inspired by the concept of charter cities and cities such as Hong Kong, Singapore, and Dubai. Through low taxes, privatized government, social services, and self-regulation, the city hopes to drive economic development and innovation that the city argues would not occur under normal government frameworks.[2]
Under the Honduran ZEDE law, Próspera has its own civil law and regulatory structure, independent from that of Honduras. However, ZEDEs remain bound by the Honduran constitution and its criminal law code.[citation needed]
The project is managed by Honduras Próspera Inc. The company is financed by several investors and venture capital firms, including Balaji Srinivasan, Peter Thiel, and Marc Andreessen, through the venture capital company Pronomos Capital.[3]
Social services such as health and education are planned to be privatized and financed from taxes, fees, and the sale of land to new residents and investors. Individuals can apply for "e-residency", which allows them to register businesses in Próspera and benefit from the local tax and regulatory structure.[4]
Residents must sign the city's social contract and pay an annual fee to live in Próspera, which is $260 for Hondurans and $1,300 for foreigners.[5]
Bitcoin is legal tender in Próspera.[6]
History
[edit]ZEDEs were the brainchild of American economist and Nobel Memorial Prize laureate Paul Romer, who was initially involved in the project.[5]
The foundation for the Honduran ZEDE project (Zone for Employment and Economic Development) was laid in 2011 under President Porfirio Lobo Sosa. It was declared invalid by the Honduran Supreme Court in 2012 because it would violate Honduras' national sovereignty. A modified plan was approved by the Supreme Court in 2013, under different judges.[citation needed]
ZEDEs were designed to be unrepealable for 50 years, to give foreign investors the necessary confidence to invest capital. By early 2021, the project was starting and the city's first buildings were constructed. German architect Patrik Schumacher was involved in the design of the apartments.[5] Shortly afterward, Honduran President Xiomara Castro made repeal of the enabling legislation for the ZEDEs a key campaign issue, and in April 2022 she signed legislation to accomplish the repeal.[7]
Próspera Inc. considers itself damaged by the repeal and is suing Honduras for up to $10.7 billion in damages, equivalent to more than a third of Honduras' gross domestic product.[8][9]
In July 2022, the US State Department condemned the action against the ZEDEs, which could violate two international trade agreements: an investment agreement between the two countries and the DR-CAFTA, a free trade agreement between the US and Central American countries.[10]
As of 2024, ZEDEs - including Próspera - remain functional.
Government
[edit]The city is governed by a council of 9 members, 5 of whom are elected and 4 of whom are appointed by Honduras Próspera Inc. Decisions are to be made by a two-thirds majority, giving Honduras Próspera Inc. a veto. Above this lies a Committee of best practices, an un-elected body whose members are appointed by the government of Honduras, with the power to approve all internal regulations and provides policy guidance[11] Although the city will be subject to the criminal justice system of Honduras, it has its own civil law.[12]
Criticism
[edit]As of May 2021, Próspera was 58 acres (0.23 km2), and its charter disallows land expropriation. However, some neighbors of the project in the nearby village of Crawfish Rock expressed a fear that their land might be expropriated after a drawing of later stages of Próspera appeared on the project website including parts of Crawfish Rock.[13] Próspera's CEO has publicly supported legal reform to make the practice illegal nationwide.[14]
Bibliography
[edit]- Andreas Kemper: Privatstädte: Labore für einen neuen Manchesterkapitalismus. Unrast Verlag, Münster 2022
- Titus Gebel: Free Private Cities: Making Governments Compete For You. Aquila Urbis, Walldorf 2018, ISBN 978-1724391384.
References
[edit]- ^ "A Private Tech City Opens for Business in Honduras". Bloomberg.com. 2021-03-27. Retrieved 2021-04-18.
- ^ Ernst, Jeff (5 July 2022). "'Go home': Honduran islanders fight against crypto colonialists". The Guardian.
- ^ "A crypto-libertarian paradise just lost an existential battle with Honduras". 11 May 2022.
- ^ "A Private Government in Honduras Moves Forward". NACLA. Retrieved 2021-04-18.
- ^ a b c Alexander, Scott. "Prospectus On Próspera". Retrieved 2021-04-18.
- ^ Palencia, Gustavo. "Honduran special economic zone adopts bitcoin as legal tender". Reuters. Retrieved 2024-04-04.
- ^ Gonzalez, Marlon (2022-04-30). "Honduran economic zones in 'limbo' after government repeal". Los Angeles Times. Retrieved 2022-05-02.
- ^ "$10.775 Billion Claim Filed Against Government of Honduras". www.prospera.co. Retrieved 2024-09-04.
- ^ Main, Guillaume Long, Alexander (2024-09-05). "How a Start-Up Utopia Became a Nightmare for Honduras". Foreign Policy. Retrieved 2024-09-04.
{{cite web}}: CS1 maint: multiple names: authors list (link) - ^ Editor; Lazare, Sarah (2022-10-28). "U.S. Pressuring New Left-Wing Honduras Government". Workday Magazine. Retrieved 2024-09-04.
{{cite web}}:|last=has generic name (help) - ^ art 11 zede laws https://pzgps.hn/wp-content/uploads/2019/05/ZEDE-Organic-Law.pdf
- ^ "Code of law" (PDF).
- ^ Ernst, Jeff (5 July 2022). "'Go home': Honduran islanders fight against crypto colonialists". The Guardian.
- ^ "A Private Libertarian City in Honduras". Reason.com. 6 July 2023.