Forget aid, Paul Romer said and suggested the model of charter cities (
read the article at the UK Prospect Magazine this month). "
How would such a city work? Imagine that a government in a poor country set aside a piece of uninhabited land. It invites a developed country to enter into a new type of partnership, in which the developed country sets up and enforces rules specified in a charter. Citizens from the poorer country, and the rest of the world, would be free to live and work in the city that emerges. It could create economic opportunities and encourage foreign investment, and by using uninhabited land it would ensure everyone living there would have chosen to do so with full knowledge of the rules. Roughly 3bn people, mostly the working poor, will move to cities over the next few decades. To my mind the choice is not whether the world will urbanise, but where and under which rules. Instead of expanding the slums in existing urban centres, new charter cities could provide safe, low-income housing and jobs that the world will need to accommodate this shift. Even more important, these cities could give poor people a chance to choose the rules they want to live and work under.
Basically in order to create a charter city, there are five following reforms need to take place:
(1) land and ownership reform: "
a government in a poor country set aside a piece of uninhabited land";
(2) freedom to move/an international right to migration: "c
itizens from the poorer country, and the rest of the world, would be free to live and work in the city that emerges";
(3) freedom to do business/right to do business: "
it could create economic opportunities and encourage foreign investment, and by using uninhabited land it would ensure everyone living there would have chosen to do so with full knowledge of the rules";
(4) the rule of law towards economic development, but also social securities: "i
nstead of expanding the slums in existing urban centres, new charter cities could provide safe, low-income housing and jobs that the world will need to accommodate this shift";
(5) even more important, free election: "
these cities could give poor people a chance to choose the rules they want to live and work under".
And now you are asking, why not for the whole country? - this is the key point:
the government of a poor country will "invite a developed country to enter into a new type of partnership, in which the developed country sets up and enforces rules specified in a charter."
Let accept the idea of Paul Romer, take its original good intention towards a world without poverty, set aside an argument that Romer's idea is pedding a new colonialism, and focus on the two following possible scenarios:
(1) If a government of a poor country is aware of its problems and wants to drive their country thriving. Would it show a commitment to the charter city model, would it want to share the (unique) power with a developed country, would it sign the partnership agreement as Romer suggested? I do not think so, simply because the government of that poor country will learn and know that there are a pool of talents out there, just treat and pay them well you will have right persons for a right direction, who need and why turn to be a "hollow" government? If so, perhaps law professors should re-exam philosophy of law!
(2) Look, if a government of a poor country pretents to see its problems, how the international community could do, force them to enter the charter city partnership agreement. Oops, it will be invalid (or develop a new theory for contract law!). So, what would the international community do? -
Again, why we not turn around and ask governments of developed countries to stop feeding corrupted governements of poor countries and give an end to the cycle of corrupted aids. Change their strategy and practice towards building partnership with people of poor countries, not corrupted governments and its
crony commies (that is MDG8 about). The first thing on the list, would governments of developed countries please eliminate the two/third price systems in getting education, protect and encourge the pursuit of knowledge by students, researchers and scholars from poor countries? It will help more.