TrendsVC Pro 0056 – Charter Cities

These are known by many names, including special economic zones (Dubai Internet City), special administration regions (Hong Kong), and countries (Singapore). File size: 599.88 KB Format File [1 Report (HTML)]

TrendsVC Pro 0056 – Charter Cities

Problem
Poor governance works. There are a few.
The benefits are concentrated. Costs dispersed.
Solution

Charter Cities are newer cities with better laws.
You can call them special economic zones (Dubai Internet City), special regions (Hong Kong), or countries (Singapore).
As Tyler Cowen says: “There are a lot more charter cities than we think. It’s just that the successful ones stop looking like charter cities.”
Players
Charter Cities
Nkwashi • A university-Construction of an anchor city in Zambia
Próspera • A semi-autonomous zone on the island of Roatán. In partnership with Honduras
Talent City • Located in Nigeria. It’s meant to be “…free of complex socio-political or economically protectionist considerations.”
Special Economic Zones
Shenzhen • Located near Hong Kong. China’s first special economic zone.
Mariel • A port located near Havana.

Centenary City • A planned city in Nigeria meant to rival Dubai and Singapore.
Tanjung Lesung • Located in Indonesia. Tourism is the main focus.
China–Belarus Industrial Park • Focused on high-Tech Manufacturing
Administrative Regions Special
Hong Kong • The former British Colony transferred to China in 1997.
Macau • A former Portuguese colony with a separate governing system from mainland China.
Sinuiju • A region of North Korea experimenting with a market economy.
Yogyakarta • The only recognized monarchy within the government of Indonesia.
Organizations
Charter Cities Institute • A nonprofit aimed at improving the ecosystem for charter cities.
Creator Towns • An initiative to grow small towns by leveraging the digital economy.
Plumia • Billed as the first country on the internet.
Bluebook Cities • A group aimed at building cloud-The first cities. Praxis also behind.
Predictions
Remote work reduces switching costs between cities. The separation of work and home is happening. We’ll optimize for lifestyle and physical networks over offices.
Cities They will compete for the citizens’ trust. Miami’s Mayor makes a show of it. Increased competition between jurisdictions is possible because of the availability of governance options.
Relocation incentives programs will be more aggressive. The remote work report includes 25+ relocation incentive programs.
Opportunities
As few battles as you can. Before you build a new city, consider moving.
Decide what tests to run. How much political autonomy do I need?
Ban cars
Taxes lower
Legalize drugs
Reform education
Use ranked-choice voting
Institue an open container law
Legalize certain medical procedures
Instead of focusing on policies, start with the problems. Don’t fetishize charter cities or seasteading. Start with the first-principles.
Try ideas cheaply. You can test governance models on cruise ships, DAOs or virtual worlds.
Key Lessons
Experiments yield positive expected returns. While most fail, some experiments have an asymmetric upside. More than 195 experiments are needed.
Environment matters. We’ve seen natural experiments where culture, geography and other variables are controlled. Governance is a tipping point.
Evolution requires variation and selection for it to work. We need more governance options, and the ability for our feet to vote.