I'm on the record expressing my deep skepticism of charter cities, “could countries,” “network states,” Seasteading, and all other such libert

The Charter City Problem: Lessons from Próspera — Unfashionable

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2024-10-31 15:00:27

I'm on the record expressing my deep skepticism of charter cities, “could countries,” “network states,” Seasteading, and all other such libertarian-flavored exit proposals. Though I'm sympathetic to libertarian goals and principles, I’m convinced these approaches are unfortunately unworkable. As I wrote in a 2021 post:

Unfortunately, libertarians often underestimate the importance of sovereignty—likely because it’s inextricably linked to violence and war. Take charter cities like Prospera: Their basic model involves negotiating agreements with poor, corrupt governments—in this case, Honduras—who control beautiful territory. The arrangement gives Prospera operational autonomy and legal independence and promises Honduras a share of the city's tax revenue in exchange. In theory, this creates a mutually beneficial equilibrium.

In practice, these agreements rely on corrupt governments that have demonstrated a chronic inability to act in their own long-term interests. After all, if the government of Honduras was reliable and rational, we wouldn’t call San Pedro Sula the murder capital of the world.

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