What Would It Be Like to Live in a Town Run by Investors?

Honduras occupies a grim spot in Latin America. It has the world’s highest murder rate, nearly 65 percent of the population lives in poverty, and about 16 percent of its GPD comes in remittances from the United States. Violence and income inequality increased even more following a military coup in 2009. The country has since held presidential elections, though opposition politicians and observers questioned the process.

This context helps explain why an idea as drastic as the “charter city” model took hold in Honduras several years ago. The concept, usually credited to the economist Paul Romer, aims to recreate the success of city-states like Hong Kong and Singapore by creating business-friendly, quasi-sovereign villages or even cities, free from government regulations and the messy realities of politics. Touted as a revolutionary development tool, the idea promises fresh opportunities for countries mired in poverty and poor governance.