Honduran Government Hypes Its New "Free Zones" with New President

Libertarians the world over have had their eye on Honduras as it
experiments with the notion of special economic zones that allow
great liberty in some respects than the rest of the nation.

Over the weekend the administration of new president Juan
Orlando Hernandez
issued a press release hyping them.

From the release:

Innovative “Zones for Economic Development and
Employment” (ZEDE) are designed
to be the most competitive new jurisdictions in the CAFTA
space.

Unlike traditional special zones that just address a single
dimension by using only economic incentives, the
Honduran ZEDE considers four critical dimensions and addresses
the legal, economic, administrative,
and political (LEAP) factors that in the CAFTA
region are vital for winning investment leadership….

The advantage for Honduran workers is real:

By building competitiveness across all the
LEAP factors, the Honduran ZEDE avoids the “race to the bottom”
that is driven by the lowest wage countries
of Asia and Africa and instead adds greater
value and security for investors seeking the most credible
“near-shore” production and employment platform in a new,
first-class jurisdiction in the CAFTA region….

the Honduran ZEDE jurisdiction competes for world
investment with additional advantages unique in the CAFTA
region:

— International legal standards, dispute resolution mechanisms
and institutions, using Common Law, mandatory arbitration, and
special judges.

— A 21st century, business-efficient, non-politicized,
transparent, stable, system of administration, plus a special
police and security institutionality to overcome regional issues
and meet world standards….

— For high value brands, a modern and transparent export
jurisdiction able to provide superior confidence and
predictability. For innovative sectors that work with new
technologies, processes and markets, an agile new jurisdiction with
a unique, rapid customization capacity.

— A durable and transparent investment regime secured by a
strong law, guaranteed by a constitutional amendment, reinforced by
an international treaty, and further protected by international
trade agreements including CAFTA and others.

I wrote of the history of this idea in Honduras back in
Reason‘s June issue, “The
Blank Slate State.”