Thursday, September 20, 2012

New Sovereign States

I cannot verify this, but the below is not exactly a new experiment and is fraught with problems.  Chief of which is the expropriation (or "sovereign reversion risk" as the fledgling State is subsumed back into its "parent" once it has displayed sufficient economic activity)

However, as I have stated here many times in the past, this type of activity will only increase as "Liberty" will have increased value as a "scarce resource" for countries and their citizens to exploit.  It is likely this flexibility in legal access and jurisdiction will have as much value as hard resources in the next 20-50 years.

TEGUCIGALPA, Honduras (AP) -- Investors can begin construction in six months on three privately run cities in Honduras that will have their own police, laws, government and tax systems now that the government has signed a memorandum of agreement approving the project.

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