The Michael Shermer Show cover image

The Michael Shermer Show

How to Start a New Country

Jan 7, 2025
Erick Brimen, founder of Prospera, shares his vision for creating Special Economic Zones that enhance economic growth through free-market principles. He discusses the governance challenges in developing nations, using Venezuela's economic struggles as a cautionary tale. Brimen contrasts these with successful models like Dubai and Hong Kong, showcasing how tailored governance can drive prosperity. He also touches on labor rights in Prospera zones and the innovative concepts behind proprietary communities, emphasizing the importance of good governance and local development.
01:00:30

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Quick takeaways

  • The establishment of Special Economic Zones (SEZs) can significantly drive economic growth by attracting foreign investment through tailored regulations and incentives.
  • Venezuela's transition from democratic capitalism to socialism illustrates how poor governance and cronyism can devastate a nation's economic potential.

Deep dives

The Concept of Special Economic Zones

Special Economic Zones (SEZs) are established areas within a country that operate under a different set of economic rules, often designed to attract foreign investment and stimulate local economies. The conversation highlights the notable trend of over 5,000 such zones worldwide, which vary in regulations and incentives provided. SEZs can offer potential tax optimizations, relaxed labor laws, and other regulatory advantages that create a competitive landscape for businesses. Countries like Dubai and Hong Kong serve as leading examples of successful SEZs, where different governance structures foster significant economic growth.

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