Big Take How a Libertarian Island Experiment Became an $11 Billion Nightmare
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Feb 17, 2025 Bloomberg reporter Michael McDonald shares insights on Prospera, a libertarian city-state on Roatan Island, designed to attract businesses with low taxes and flexible regulations. He discusses the ambitious goals of the project, its initial appeal among entrepreneurs, and the dramatic political shift threatening its existence, with a new party looking to dismantle its framework. Tensions with the local community, criticisms about its economic impacts, and implications for similar projects abroad paint a complex picture of this $11 billion experiment.
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Prospera's Appeal
- Prospera, located on Roatán, Honduras, offers a unique blend of resort amenities and a business-friendly environment.
- It attracts libertarians, entrepreneurs, and Silicon Valley billionaires with its low taxes and flexible regulations.
Prospera's Autonomy
- Honduras's special law allows Prospera to operate autonomously, setting its own tax rates and regulations.
- Businesses can even choose their preferred regulatory framework from a list of countries or submit their own.
Unique Ventures in Prospera
- Several unique businesses operate in Prospera, including a Bitcoin cafe and a nuclear reactor manufacturer.
- A biometrics company offering implants highlights the zone's appeal for ventures facing regulatory hurdles elsewhere.