#63

It sounds like Propera’s future may be in doubt:

The For-Profit City That Might Come Crashing Down

The dream of Próspera, founded by a U.S. corporation off the coast of Honduras, was to escape government control. The Honduran government wants it gone.

Próspera has become particularly well known for the zone’s experimental medical facilities, which run clinical trials unburdened by F.D.A. standards. The week of my visit, Patri Friedman, grandson of the economist Milton Friedman and the founder of a start-up-cities fund that invested in Próspera, had a chip with his Tesla key implanted into his hand. On a previous trip he brushed his teeth with genetically modified bacteria purported to prevent cavities. Another time he was injected with a protein booster intended to make him “stronger and faster,” as he put it at a conference in Roatán that weekend.

…

A national protest movement was born, and prominent politicians turned against the project. In 2021, Xiomara Castro, the wife of the ousted President Zelaya, made repealing the ZEDEs a central promise of her election campaign. The zones became associated with the corruption of Juan Orlando Hernández, the president at the time, whom many Hondurans now revile. Castro won with a clear majority. In 2022, Honduras’s Congress unanimously repealed the law and passed a constitutional reform that would abolish the three existing ZEDEs. “Never again will we carry the stereotype of the banana republic,” Castro declared to the U.N. General Assembly a few months later.

There was one problem, however: Congress, mired in competing legislative priorities, failed to ratify the reform. Furthermore, the original ZEDE law guaranteed the companies 50 years of legal stability — no matter what changes were made after a zone was founded. The net result is that Próspera is in a state of legal limbo.

Full article: The For-Profit City That Might Come Crashing Down (NY Times)

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#64

I know nothing of the law, but if they said it was for 50 years I don’t see how they can break that contract without a huge payout.

It’s like the Hong Kong thing. Can’t change your mind.

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