Idea
A new city, created on undeveloped land, operating under a special charter with rules different from the rest of the host country — often administered with outside help.
Theory
Paul Romer popularised the idea in 2009, citing Hong Kong and Shenzhen: good rules could be 'imported' quickly if people chose to move to a place where they apply. Later versions emphasise private developers and investor-friendly legal regimes.
Real examples
- Madagascar discussed a charter city with Romer before a 2009 political crisis ended the plan.
- Honduras created REDs (2011, struck down in 2012) and then ZEDEs (2013).
- Próspera on Roatán was established under the ZEDE regime.
Critique
Critics see a democratic deficit — residents may have little say over rules set by developers or foreign boards — and a risk of carving out zones for investors. Honduras repealed the ZEDE law in 2022 and its Supreme Court ruled the regime unconstitutional in 2024.
Results
Special economic zones are common worldwide; charter cities with genuinely separate governance remain rare and legally fragile.
Related
Real examples
A nonprofit founded in 2008 to promote floating, self-governing ocean communities; its 2017 project with French Polynesia did not proceed.
A private charter jurisdiction on the island of Roatán created under Honduras' ZEDE regime; its legal basis has been repealed and ruled unconstitutional.
One of China's first Special Economic Zones, designated in 1980, where market-oriented rules were tested within a one-party state.
From 1925 to 1956 (except Spain's 1940-45 occupation) Tangier and its district were run under a treaty statute by France, Britain and Spain, later joined by Italy and others: an international administrator, a nominated assembly, a Mixed Court and a free-trade regime.
A planned new city announced in 2021 by entrepreneur Marc Lore, built on 'equitism': land held by a community endowment whose appreciation would fund public services. No site has been selected.
Proposals for how a permanent human settlement on Mars could be governed, set against the 1967 Outer Space Treaty, which bars national appropriation of celestial bodies and keeps states responsible for their private actors.
Claims
Paul Romer proposed charter cities in 2009: new cities on uninhabited land, governed by a charter that differs from host-country rules, which people could choose to move to.[1]
Whether charter-city zones benefit host-country residents or mainly serve outside investors is disputed; in Honduras opponents argued that ZEDEs ceded national sovereignty.[1][2]
Revision history
- 2026-10-23rev 2 — Seed import
- 2026-10-23rev 1 — Seed import