Honduras appears set to create a series of privately-run cities, complete with their own police, laws, government, tax systems, and immigration policy. They'll even be empowered to sign their own international economic agreements. Todd Zywicki is elated. I'm terrified.
It's not entirely clear who will be establishing and overseeing these new governmental institution but, if as appears likely, they are either formally or de facto under the control of the cities' investors, the possibility of abuse appears rampant. The body of government not only will be entirely unaccountable to the majority of its constituents (the persons working in the cities), but may have a duty of loyalty to the outside investors. Meanwhile, if anyone is expecting the project to refrain from abusing the little guy, it's off to a rough start -- local indigenous tribes are already alleging that the project is taking their land without their consent.