One of the stranger fallouts from the 2009 Honduran coup has been the scheme hatched by an NYU economist, Paul Romer, along with free-market libertarians—including Milton Friedman’s grandson, Patri; you can’t make this shit up—to start a bunch of “year-zero” cities in the country, free-market utopias with their own laws, etc. It’s like Empire’s Workshop meets The Shock Doctrine meets Fordlandia (except Henry Ford at least had his year-zero city provide free health care). If they were to come to fruition, they would be little more than free-trade maquila zones, like the kind that run along the US-Mexican border, except more savage.
In any case, the plan has hit a snag in that a committee of the Honduran Supreme Court has declared them unconstitutional, though that ruling could be reversed by the full court. Recently, a lawyer who argued for their unconstitutionality was gunned down, joining the long list of decent people killed as a result of the US-endorsed coup.
By the way, related to the discussion Corey Robin had on his blog about whether Hayek’s and Friedman’s support for dictatorships were inherent to their thought or just situational, Patri Friedman has cleared that point up, saying, in relation to these kind of start-up cities, that “Democracy is the current industry standard political system, but unfortunately it is ill-suited for a libertarian state.” Peter Thiel, founder of Paypall and bankroller of FB and another supporter of the Honduran scheme, wrote: “Most importantly, I no longer believe that freedom and democracy are compatible.” Glad that particular contradiction has gotten resolved. Adelante.