Introduction to Charter Cities
February 5th 2010 16:58
“…[P]icture someone from a very poor country, a family, a couple of young children, a father and a mother, and picture them moving to Munich or Zurich or Vancouver. We don’t think of that as colonial; we think of that as something that gives them opportunities that they really want. And this proposal is no more than saying if we can’t let hundreds of millions of people go to those cities, let’s create some new cities that are run like those cities where large numbers of people could go.” — Paul Romer
The concept of Charter Cities as a global-poverty solution was pioneered recently by economist Paul Romer. It allows, through flexible means, a charter city to be created and populated by whomever would like to move there. Presumably, the billion people stuck in extreme poverty would like the chance to live in a city governed by the rules that lead to prosperity. According to Romer, these cities would "provide security, economic opportunity, and improved quality of life." The charter city is originally set up by an existing national government who is given the rights to create a charter laying out the rules of the city. People and investors can then decide if these rules seem appealing to them. The most successful systems of rules win.
From Romer:
"The key in each case lies in timing. The charter comes first, then residents, investors, and employers each decide whether to come live under the rules that it specifies. Historically, the ability to vote with one’s feet has been a powerful force for progress. Charter cities offer a chance to amplify it, dramatically improving the rate at which people get access to better rules."
Not only do the people who move to charter cities benefit, but the national governments that are losing their citizens will be under increased pressure to improve their own rules. Immigration restrictions by nations are the barrier to capturing all of the enormous benefits of migration. Charter cities overcome this barrier by throwing open their doors to these otherwise-helpless people.
Read more here.
The best example of a charter city, Hong Kong.
The concept of Charter Cities as a global-poverty solution was pioneered recently by economist Paul Romer. It allows, through flexible means, a charter city to be created and populated by whomever would like to move there. Presumably, the billion people stuck in extreme poverty would like the chance to live in a city governed by the rules that lead to prosperity. According to Romer, these cities would "provide security, economic opportunity, and improved quality of life." The charter city is originally set up by an existing national government who is given the rights to create a charter laying out the rules of the city. People and investors can then decide if these rules seem appealing to them. The most successful systems of rules win.
From Romer:
"The key in each case lies in timing. The charter comes first, then residents, investors, and employers each decide whether to come live under the rules that it specifies. Historically, the ability to vote with one’s feet has been a powerful force for progress. Charter cities offer a chance to amplify it, dramatically improving the rate at which people get access to better rules."
Not only do the people who move to charter cities benefit, but the national governments that are losing their citizens will be under increased pressure to improve their own rules. Immigration restrictions by nations are the barrier to capturing all of the enormous benefits of migration. Charter cities overcome this barrier by throwing open their doors to these otherwise-helpless people.
Read more here.
The best example of a charter city, Hong Kong.
The flourishing Hong Kong is an example of a successful charter city idea in practice.
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