Charter Cities Podcast

There is a growing body of empirical evidence that points toward the important, long-term effects that historic events can have on economic development, and today’s guest, Dr. Nathan Nunn, is major player in this area of research. Dr. Nunn is a Professor of Economics at Harvard University, and his research ranges across development economics, political economy, economic history, and other areas, especially focusing on the long-term impact of historical processes on economic development today, often mediated through factors like culture, social structures, norms, and institutions. In this episode, Dr. Nunn shares his views on Canada’s response to COVID, his critique of foreign aid tied to the strategic interests of the donor country, and shares the case for unconditional cash transfers or universal basic income instead of foreign aid. He explains the link between food aid and civil conflict, the benefits of industrial policy, and his thoughts on a devolution of authority, as well as urbanization in Africa, the correlation between the slave trade and mistrust in Africa, and the effect of corruption on culture. Dr. Nunn also takes a deep-dive into group level selection and competition, the long-term impacts of mining versus plantation farming in Africa, and why he believes that it’s impossible to understand development without history, and he also includes some suggested reading for grad students outside of economics. Tune in today to find out more!Key Points From This Episode:•   The current projects Dr. Nunn is working on, specifically a review called History as Evolution.•   Why Dr. Nunn believes Canada’s response to COVID has been better than that of the US.•   Dr. Nunn’s critique of foreign aid when it’s tied to the strategic interests of the donor country.•   The case for unconditional cash transfers or universal basic income – low overheads, simplicity, it allows people the most choice.•   Some issues and concerns when aid or food aid is tied to politics, like increased civil conflict.•   Thoughts on industrial policy and its benefits, such as alleviating the poverty trap.•   Dr. Nunn shares his take on the benefits of the devolution of authority to a local or city level.•   When smaller units have autonomy, through trial and error, it results in positive externalities.•   Dr. Nunn comments on ruggedness and rapid urbanization versus economic rationale in Africa in response to the slave trade.•   Why Africa isn’t seeing the same improvements that accompany urbanization elsewhere.•   Dr. Nunn describes the paper he coauthored with Leonard Wantchekon on the correlation between the slave trade and mistrust in Africa.•   How correlations between trust and urbanization or education have not been proven.•   Dr. Nunn’s predictions for trust levels in the US, based on contact hypothesis and immigration.•   How cultural norms are shaped in individuals from countries with higher or lower corruption.•   Dr. Nunn talks about some of his colleagues, like Leonard Wantchekon and Melissa Dell.•   The long-term impacts of mining versus plantation farming in Africa.•   Why Dr. Nunn strongly believes that it’s impossible to understand development without history.•   Anthropologists or sociologists that have informed Dr. Nunn’s work or been impactful and how.•   Dr. Nunn explains how learning about anthropology and evolutionary anthropology benefitted his research in development economics.•   Some valuable lessons that Dr. Nunn learned from the late, great institutional and political economist, Alberto Alesina.Links Mentioned in Today’s Episode:Dr. Nathan Nunn on TwitterDr. Nathan Nunn EmailDr. Nathan Nunn HarvardHistory as EvolutionThe Top Doctor Who Aced the Coronavirus TestDani RodrikLeonard WantchekonU.S. Food Aid and Civil ConflictThe Slave Trade and the Origins of Mistrust in AfricaCultures of CorruptionMelissa DellAfrican School of EconomicsThe Secret of Our SuccessAfricans and the Industrial Revolution in EnglandAlberto Alesina

Today’s guest is Mark Koyama, Economic Historian at George Mason University. Mark recently co-authored Persecution & Toleration: The Long Road to Religious Freedom with Noel Johnson, and in this episode, we talk to Mark about some of its big themes – state capacity, religious toleration, and political competition. We begin by hearing Mark’s ideas about a key argument in his book, the connection between religious freedom and the development of liberal societies. From there, we unpack the meaning of the idea of state capacity which springboards a discussion on the relationship between strong states and the treatment of religious minorities. To flesh out some of the nuances of this idea, our discussion hones in on the treatment of Jews during the Black Death during the Holy Roman Empire. On the topic of state-building, we look at some examples of small city-states versus medium states in Europe, hearing Mark’s ideas on why the latter had more lasting power. We also speak about the role of weaponry in state-building. Our conversation moves to focus on the idea of shocks to a local labor pool and how these forces affect wages and markets in different ways. Following this, Mark talks about the persecution of Christian ‘heretics’ during the Reformation and the role of the printing press as well as the Ottoman Empire. We speak about the influence of the ideas of Locke and Spinoza on religious toleration and then move on to critically examine the ‘everything exists is efficient’ argument as it pertains to state-building. Wrapping up, we talk to Mark about how deep roots literature accounts for state-building in Europe, the role of counterfactual thinking in economic history, and the role of data and analytic narratives in understanding history. We round off the episode with an exchange about how an understanding of economic history will make Libertarian arguments against the state less convincing. Tune in today!Key Points From This Episode:•   Mark’s new book looking at how we get modern, liberal societies through the lens of religious freedom.•   Other indicators or drivers for Liberalism and why Mark sees religious freedom as a major one.•   Examples of so-called liberal states suppressing religion.•   Liberal states defined as states which place value in having religious freedom.•   Mark’s definition of state capacity, another major theme in his book.•   Tracing the evolution of state capacity as a phenomenon and a term.•   The relationship between strong states and the treatment of religious minorities.•   Jewish tolerance and pogroms during the Black Death in the Holy Roman Empire.•   The role of the size of political units on the development of state capacity in Europe.•   How (the cost of) weaponry influences state-building and state capacity.•   How different types of labor shock affect wages and markets.•   Why some Christian sects were persecuted around the time of the Reformation and the printing press.•   Whether the political decentralization of the Holy Roman Empire and the Ottoman Turks are related to the Reformation.•   The ‘deep roots’ argument and how it fits in with the development of modern Europe.•   Mark’s book section dealing with the ideas of Locke and Spinoza concerning religious toleration.•   Why the argument that ‘everything which exists is efficient’ is not helpful for understanding state policies.•   How counterfactuals can be applied to history and which approaches are useful.•   The role of data and analytic narratives in understanding history.•   The relationship between one’s understanding of economics and one’s politics.•   The importance of economic history for libertarians skeptical of state capacity.•   A final takeaway from Mark’s research about the dangers of identity rules.Links Mentioned in Today’s Episode:Mark LutterCharter Cities Institute on TwitterCharter Cities Institute on FacebookMark KoyamaGeorge Mason UniversityNoel JohnsonPersecution & Toleration: The Long Road to Religious FreedomTyler Cowen’s Blog Post on State CapacityCharles TillyMichael Mann‘Persecution Perpetuated’‘The Fractured-Land Hypothesis’Escape From RomeAdam SmithMartin LutherProfessor Peter LeesonJohn LockeBenedict de SpinozaDavid HumeThomas HobbesRobert NozickDavid Friedman

Digital technology has evolved to the point that by hitting keys and tapping mice buttons, you can literally build a city in the cloud. This viral idea was started by angel investor Balaji Srinivasan, who believes in creating cities with crowd-funded territories and governed by smart contracts. In our conversation with Balaji, we touch on many intricate topics that link to two concepts — using tech to design ideal cities and how innovation is driven by exit strategies. Early in the episode, we dive into the future of America, and the rest of the world, as we explore the country’s politics, geography, military, and intellectual power. After discussing why it’s so difficult to get anything done in the US, Balaji talks about why people might soon begin emigrating from America. From cryptocurrency to Indians recognizing the success of Indian immigrants, Balaji shares his insights on how exits and alternative strategies can be the leading force behind change. Following this, we begin unpacking the ideas behind Balaji’s cloud city, the reasons that cities have historically been founded, and the many benefits of designing a city according to your group identity. Reflecting Balaji’s ‘digital first’ mindset, we chat about how innovations in the physical world can be driven through digital simulation before discussing why risk-aversion is the enemy of progress. An episode filled with carefully considered arguments and counter-arguments, tune in to hear more about Balaji Srinivasan’s incredible vision of the future.Key Points From This Episode:•   Hear why podcast host Mark sees a brighter future for the US than anywhere else.•   How robotics will have a greater impact on national outcomes than demographics.•   Mark and Balaji debate the question— “Is this the Chinese decade or the Chinese century?”•   Arguments for why US power might be vastly overestimated.•   How the internet is being segmented by different nation’s regulations.•   Why America can be considered an empire in decline.•   Comparing India in the 80s with present-day America.•   The benefits of seeing people of your heritage be successful within other models and areas.•   How creating successful alternative models can lead to reform.•   Balaji explains why there might be a mass exodus of people leaving America.•   Exploring the types of people who will emigrate from America.•   Using current technology to build a city in the cloud.•   How a ‘digital first’ approach can bring down costs when building a city.•   The three reasons why cities are often founded.•   Benefits to physically grouping yourself in a city with other like-minded people.•   Aligning groups of people and the challenge that comes from having huge online communities.•   How people prioritize their many identity expressions to determine what’s intrinsic to who they are.•   Pushing innovation in the physical world through digital simulation.•   Why risk or degrees of “Anarchy” will always come before innovation.Links Mentioned in Today’s Episode:Mark LutterCharter Cities Institute on TwitterCharter Cities Institute on FacebookBalaji SrinivasanBalaji Srinivasan on LinkedInBalaji Srinivasan on TwitterNATOEdward SnowdenEmmanuel Macron‘The Chinese Decade’The Accidental SuperpowerVicariousBoston DynamicsBalaji TR35 TalkWhatsAppInstagramMinecraftSatoshi NakamotoWall Street JournalKodakThe End of PowerThe Revolt of the PublicBill GatesGoogle ChromeContagionJavits CenterSatya NadellaLee Kuan YewDeng XiaopingNew York TimesNomad ListTeleportCADFight ClubIKEAGoogle NewsWild Wild CountryCrossFitCommunistic Societies of the United StatesAnna GátInterintellectKanye WestTyler CowenPeter ThielJeff BezosFree State Project

What is progress, has it slowed down, and what can we do about it? Joining us today to talk about the emerging field of progress studies and how it might help us dig into questions like these, is Jason Crawford, author of the blog, Roots Of Progress. Jason opens by providing us with a definition of progress and why the active study of it might help us rekindle it in our world. We talk about how progress has increasingly dwindled next. In the late 19th and early 20th century, four major progress revolutions were occurring in fields of chemical engineering, oil, electricity, and germ theory, and today we only have one, tech. In thinking about why this has occurred, we examine the stagnation hypothesis which argues that as a culture we have come to prize innovation less, we have chosen the low-hanging fruit of previous innovations to explore rather than find new ones, and regulations have grown to the extent that breakthroughs have been throttled. Jason gives his thoughts on these arguments, and also adds a fourth reason which centers around a change in funding structures for innovation. The next part of our conversation is about how we might bring back a culture of inventiveness, past examples of cities that were hubs of invention, and what the ingredients for great innovation are. Along with this, Jason shares his thoughts on what the next big movement could be before we wrap up with a discussion on the risks inherent in progress and what an effective movement for social change might look like.Key Points From This Episode:•   Introducing Jason and the definition of progress, as well as the new field of progress studies.•   Examples of progress that occurred without progress studies – why do we need this field?•   Arguments for and against the ‘stagnation hypothesis’ as a theory of slowed progress.•   Four revolutions in the late1800s to early 1900s comparable to our tech revolution: chemical engineering, oil, electricity, and germ theory.•   The stagnation hypothesis reframed as a consideration of what happened to the four revolutions.•   Critically unpacking the ‘culture’, ‘low-hanging fruit’, and ‘regulation’ arguments for slowing progress.•   Another reason why progress might have petered out that centers around funding structures.•   The heyday of corporate research versus today’s progress model: Universities and ‘tech transfer’.•   The difficulty of implementing high-level ideas that are possible and the role this might play.•   Separating science from the corporate world and the need to merge both for more progress.•   How we could bring back more of a culture of breakthroughs; new career paths and looking to the late 19th century.•   Examples of do-it-yourself invention culture from today: prosthetics, automatic pancreases.•   Why some cities are hubs of invention and what the ingredients for this creativity are.•   Jason’s thoughts about why the next major revolution might be in biotech.•   Online chat spaces that allow for serendipity; inventiveness might no longer be geographically bound.•   Balancing the existential risk aspect of world-ending technology with the idea of progress.•   Technologies producing unforeseen dangers and how we are handling risk assessment.•   How social movements can collapse and whether an effective model for social change exists.•   Moving past arguments about regulation to an attitude of ‘what can actually be done.’Links Mentioned in Today’s Episode:Mark LutterCharter Cities Institute on TwitterCharter Cities Institute on FacebookJason CrawfordJason Crawford on TwitterRoots of ProgressPatrick CollisonTyler Cowen‘We Need A New Science of Progress’Francis BaconPeter ThielThe Rise and Fall of American GrowthWtfHappenedIn1971Elon MuskWhere's My Flying Car? A Memoir of Future PastBen Reinhardt on TwitterMichael Nielsen on TwitterThe Great BridgeSimons FoundationAT&TBell LabsScott Alexander‘The Atomic Bomb Considered As Hungarian High School Science Fair Project’Alexander FlemingTony Blair Institute For Global ChangeThe Tanner Greer Blog (Scholar’s Stage)

The Charter Cities Institute has seen rapid growth in recent months, having gone from three employees in February to ten as of this week, so we decided to do something a little different on today’s show. Kurtis Lockhart, Head of Research at the CCI sits down with Founder, Mark Lutter, to provide a high-level overview of the concept of charter cities, why their time has come, how the CCI fits into it all, and what the future holds. The first part of the conversation is all about charter cities, how they differ from conventional ones and special economic zones, and why they are becoming more important. From there, we move onto the history of charter cities, getting into some major recent advocates of the movement and a few examples of successful semi-autonomous cities from the post-war era and what we can learn from them. We turn our attention to some of the common criticisms of charter cities next, considering the political threat they could end up posing, how they propose to be different from the countries they exist in, and how to get people to start moving into them once development commences. Following this, we explore the implementation aspect of charter cities, discussing how the CCI is approaching six things that should be considered before building one: Governance, policies, urban planning, site selection, selecting an anchor tenant, and minimizing the risk of expropriation. The last part of our conversation is all about the CCI as an organization – Mark’s research that led to its founding, the challenges and successes it has seen, and the vision it has for the future. Be sure to catch this episode for an in-depth look at the potential charter cities and the CCI have to change the world for the better.Key Points From This Episode:•   A high-level definition of charter cities and why they are important.•   How charter cities differ from conventional cities and special economic zones.•   Four aspects of charter cities that enable them to spur long-term economic development.•   How the CCI’s version of charter cities would be governed and set up through public/private partnerships.•   Why governments would invite developers to build and collaborate on charter cities.•   The amount of master plan cities being built globally and range of their value propositions.•   The advantages of a charter city over a master-planned one and a regular one.•   Ideal environments to build charter cities in; openness, rapid urbanization, and more.•   Why now is a time where charter cities seem more valuable than ever.•   Reinvigorating liberalism and the cosmopolitanism of trade cities using charter cities.•   How charter cities fit into the effective altruist framework of tractability, neglectedness, and scalability.•   Conceptions of scalability and the work being done to enable charter cities to scale.•   A history of charter cities and how the CCI is building on Paul Romer and Patri Friedman’s work.•   Early examples of cities built using a degree of planning and their modern influence.•   Problems with unplanned and planned cities and the ‘slow feedback loop’ of cities.•   Lessons to be learned from successful, semi-autonomous cities in the post-war era.•   Common criticisms of charter cities and how they are based on misunderstandings.•   How to get people to move to a charter city; reasons why people start and move to cities.•   Why governments might expropriate their charter cities; the political threat they could pose.•   Issues around building charter cities in upper or middle-income countries.•   The role of incentives in charter cities being less prone to their host countries’ problems.•   Six considerations when building a charter city and how the CCI is approaching them.•   The six considerations: Governance, policies, urban planning, site selection, selecting an anchor tenant, and minimizing the risk of expropriation.•   Raising money to build a charter city, who would fund each phase, and the different models that exist.•   What goes into building the financial model for a charter city.•   How the CCI was born as a way of building momentum for the charter city movement.•   Why Mark was attracted to the idea of charter cities initially and the path his research took.•   Challenges Mark faced in the early phases of the CCI and the lessons he has learned.•   Successes the CCI has enjoyed around influencing developer agendas and getting projects off the ground.•   The biggest constraints for the CCI, and constraints on charter cities more broadly.•   Why the CCI strategy is focused on building ecosystems for charter cities rather than individual projects.•   Building CCI in years one, two and three; hiring staff, and what the future holds.•   What Mark is looking for in staff; entrepreneurship, regions of expertise, values, etc.•   The different areas of work the CCI and charter cities will do in future, and ideal candidates to do it.•   Peddling influence and why the CCI was founded in Washington.•   What the CCI does in concrete terms as a think tank/advocacy organization.•   How the CCI measures its impact; measuring outcomes rather than output.•   Exciting projects and what the charter cities space will look like in the next few years.•   The elevator pitch for the CCI and what they want to look like in ten years.•   Where to find Mark and CCI online to learn more about what they do.Links Mentioned in Today’s Episode:Mark LutterMark Lutter on TwitterMark Lutter EmailCharter Cities InstituteCharter Cities Institute on FacebookCharter Cities Institute on TwitterKurtis LockhartPaul RomerWade Shepard on TwitterPatri Friedman on TwitterThe Seasteading InstituteFrancis FukuamaThe End of HistoryMIRIOpenAIGiveWellJ-PalGenghis KhanThe 80,000 Hours Podcast with Rob WiblinPeter ThielWerner StiefelCharter Cities Ep 7 with Patri FriedmanPaul Romer’s 2009 TED TalkAlexander the GreatAugustusCaesarMark AntonyPeter the GreatOscar NiemeyerMITHarvardJane JacobsCharter Cities Ep 3 with Alain BertaudLee Kuan YewMao ZedongDeng XiaopingCity of GoldCharter Cities Ep 2 with Gyude MooreJeffrey MasonHeba ElhanafyAfrican Export-Import BankAfrican Development BankPronomosMichael Van NottenThe Law of the SomalisSpencer MacCullumGeorge Mason UniversityNeWay CapitalProsperaThe UNThe World BankDFCWorld Economic ForumPaul GrahamNkwashiIyinoluwa AboyejiTalentcityEnyimba Economic CitySheikh Mohammed bin Rashid Al MaktoumVictoria Harbor GroupEPAIFC

Today we welcome Erick Brimen, the CEO of Próspera, which is arguably the world's first charter city, off the coast of Honduras on an island called Roatán. Erick is on the podcast to unpack the exciting news about Próspera, the philosophy behind its founding, and the vision for its short-term and long-term future. Our conversation covers a lot of in-depth detail on Próspera, with Erick explaining approaches to governance, reform, cultural integration, common law and so much more! Erick gives us a great introduction to the first of several planned locations for the Próspera project, also unpacking what this expansion could possibly look like in decades to come. We get in the choice of Roatán and the specific opportunities offered by the island, with Erick situating his reasoning within his broader interest in charter cities and economic expansion. Erick also talks about his work before Próspera and the lessons he brought forward from time in the asset management space and working with the government of Arizona. The conversation also covers putting together the right team of people, balancing skills, and preparing for an unknowable set of hurdles. From there, we turn to the legal side of starting a city, and Erick gives an insightful look into the various frameworks that have been put in place for management and legislation. The last part of our chat today is spent thinking about the residential experience of Próspera and the infrastructure, planning, and architecture of the city, with Erick capping off our discussion looking forward to 2050 and where Próspera might be. For all this and a whole lot more, be sure to listen in with us today!Key Points From This Episode:•   The philosophy behind the charter city of Próspera and the model they have adopted.•   Bringing together a built environment and working with government towards the goal of prosperity.•   The selection of Roatán as Próspera's first location and what set it apart from similar islands.•   The importance of governance reforms and buy-in; creating security on many levels.•   How context influences daily decisions and the impact of Honduran history on a new city.•   The task of starting from scratch with a city; prioritization of funding, governance, and more.•   Reasons that Roatán stood out from other Honduran locations; beauty, safety, and stability.•   The Hong Kong to Shenzhen example and the inspiration that Próspera is taking from this model.•   Erick's personal interest in charter cities and the mission of reducing wealth disparity.•   The influence of Erick's work experience in asset management, Arizona governance, and beyond. •   Building a strong and balanced team, with the right skillsets for unforeseeable challenges.•   Erick's connection to the image of water; resilience, flexibility, and continued progress.•   Legal considerations for Próspera and the creation of the Roatán Common Law Code.•   Putting together a functioning legal system and using different pieces of law.•   Unpacking the Próspera Arbitration Center and contrasts with typical arbitration services.•   The role of the Próspera Council and service providers in decision-making.•   Understanding the Agreement of Co-existence and what this contract stipulates for residents.•   The process of registering a business in Próspera and the efficiency they are aiming for.•   Local buy-in and integrating the different sectors with new infrastructure.•   Practical and lifestyle-facing decisions for Próspera; architecture and environment.•   The projected economic development plan for Próspera and the disruption of COVID-19.•   Erick's 30-year vision for Próspera; a network of prosperity hubs with quality and standards.•   Why is Próspera is good development now? Making use of current opportunities. Links Mentioned in Today’s Episode:PrósperaErick Brimen on TwitterSpaceXBabson CollegeHugo ChavezNeWay CapitalSteve JobsEYES InternationalGovernor DuceyOPECTom BellPatrick FriedmanPróspera Arbitration CenterTristan MonterrosoZaha Hadid ArchitectsCharter Cities InstituteCharter Cities Institute on TwitterCharter Cities Institute on FacebookMark Lutter on Twitter

Tocqueville said, “We need to work at making democracy work.” That is the springboard from which this episode begins. Kurtis Lockhart fills in for Mark Lutter as today’s host, and our guest is Professor Nic Cheeseman. Nic is a political scientist at the University of Birmingham, and was formerly the head of the African Studies Center at Oxford University. His research focuses on a range of topics, from democracy and elections, to development and institutional change, all of which we will discuss in this episode. Nic is the author or editor of ten books on African Politics, including Democracy in Africa: Successes, Failures, and the Struggle for Political Reform and How to Rig an Election. Nic shares with us some of the projects he is working on, and we discuss anti-corruption messaging, foreign aid, China in Africa, and redrawing African countries’ borders, as well as invisible election rigging, “sweet spot” strategies, and counterfeit democrats. Tune in today!Key Points From This Episode:•   Nic shares the projects that he is working on, including one on elections and COVID.•   Anti-corruption messaging, corruption fatigue, and the need to change incentive structures.•   The value of redesigning messages rather than reinforcing the scale of the problem.•   Nic’s concerns about the Department for International Development being merged into the foreign office body.•   The only thing Nic thinks will counter the significance of China in Africa is bigger investment.•   Nic’s thoughts on foreign aid serving geopolitical concerns or power competitions.•   What Nic thinks the international development community should prioritize – do less, better.•   How Tocqueville’s writings on democracy have helped shape some of Nic’s thinking.•   Why Nic believes that Jeffrey Herbst’s suggestion to redraw borders in Africa is unfeasible.•   What Nic is interested in about cities, and his views on urbanization, and urban or rural bias.•   What has made Lagos such a successful city and how other African cities can follow suit.•   Why invisible election rigging is one of the biggest challenges to contemporary democracy.•   Sweet spot strategies include gerrymandering, the exclusion of a rival candidate, and so-called subtle violence or intimidation.•   Nic is worried that other governments will learn subtle intimidation and use it to win elections.•   Going from high-level thinking about institutions to actual on-the-ground implementation when one constantly has to worry about “counterfeits.”•   Democracy in Africa’s collaboration with The Continent, a free newspaper in partnership with The Mail & Guardian, South Africa.Links Mentioned in Today’s Episode:Prof. Nic Cheeseman on TwitterProf. Nic Cheeseman on LinkedInProf. Nic CheesemanDemocracy in Africa on TwitterDemocracy in AfricaDemocracy in AfricaHow to Rig an ElectionThe Moral Economy of Elections in AfricaDepartment for International DevelopmentRegional and British International Development PolicyRural DemocracyThe Continent by Mail & GuardianThe Resistance Bureau Podcast

Charter cities can be thought of as the next generation of special economic zones. Today’s guest is Lotta Moberg, a macroeconomic analyst at the Dynamic Allocations Strategies team at William Blair in Chicago. Lotta is considered somewhat of an expert on special economic zones, given that her dissertation explored the entrepreneurial state and the government as an entrepreneurial and commercial actor, as well as special economic zones. This is also the topic of her book, The Political Economy of Special Economic Zones. In this episode, we discuss everything there is to know about special economic zones, including knowledge and incentive problems, economic activity versus political need, concentrating resources versus implementing them in the economy as a whole, and private versus government initiatives. Lotta shares some of the key determinants for successful special economic zones, the importance of regulatory reform, and why China has been so successful in implementing them, as in the case of Shenzhen. We also go into the differences between charter cities and special economic zones and how the two can complement each other. Tune in today to find out more!Key Points From This Episode:•   How Lotta got into the special economic zone space through development economics.•   Thinking about market development, and what drew Lotta to special economic zones.•   Lotta explains the knowledge problem and how it relates to appropriate resource allocation.•   How resources are potentially allocated in a market economy versus a socialist economy.•   The incentive problem as it relates to specific zones and what incentivizes those in charge of those zones to spend unnecessarily on them.•   Generating economic activity versus benefiting political need, which can harm the economy.•   Measuring whether a special economic zone is successful or unsuccessful is difficult.•   Concentrating resources to attract foreign investors versus implementing them in the economy as a whole and allowing investors to pick their location.•   Agglomeration through private initiatives versus government initiatives with specific benefits.•   Special economic zone or charter city level reform versus a national level reform.•   Key determinants for successful special economic zones, including regulatory reforms.•   The difference between charter cities and special economic zones is governance.•   Why Lotta believes that China’s special economic zones, like Shenzhen, were so successful.•   Why it’s difficult to replicate a special economic zone like Shenzhen elsewhere in the world.•   Looking at a charter city like a conglomerate and approaching the knowledge and incentive problem in the case of a charter city.•   How the charter city space has evolved and how to spread the message more effectively.•   How charter cities and special economic zones can complement one another. Links Mentioned in Today’s Episode:Lotta MobergLotta Moberg on TwitterLotta Moberg on LinkedInThe Political Economy of Special Economic Zones

Africa is the fastest urbanizing region on the planet. The continent’s rapid population and economic growth demand large-scale solutions. As Africa’s new private city builder – backed by American, Norwegian, British and New Zealand investors – Rendeavour builds cities in the growth path of some of Sub-Saharan Africa’s fastest growing regions. Today’s guest is Yomi Ademola, the country head for Nigeria for Rendeavor, which is the largest urban real estate development company in Africa. In this episode, we discuss what it means to create livable, sustainable cities, the process of building them, and how they fit into the broader regional development of their locations. Yomi also shares with us what the impact of COVID has been on his business, the importance of blending local capacity with international expertise, as well as how to balance the need for order with the organic emergence of a city in its own right. For more on building the livable, sustainable, and aesthetically pleasing cities of the future, tune in today!Key Points From This Episode:•   Yomi introduces himself and gives a bit of background to founding Rendeavour.•   What Rendeavour is, what it means to build cities, and where their current developments are.•   The process of building a city, from site selection and feasibility to livability and sustainability.•   There is such a demand for new, clean, aesthetically pleasing cities in Africa given the rapid rate of urbanization and the resulting congestion.•   How these cities fit into the broader regional development of their locations.•   Other city projects that Yomi draws inspiration from and how PPPs like his can be catalysts for rapid economic development.•   How COVID has affected what’s happening on the ground and the demand for Yomi’s services.•   Raising capital and withstanding downturns depends on financial capacity of shareholders.•   The importance of blending local capacity with international expertise, for successful projects.•   Getting a critical mass of movers to jumpstart activity in these areas: Commerce is what capitalizes growth.•   Balancing the need for order and the organic emergence of a city in terms of urban planning.•   Yomi’s currency risk mitigation strategies for working in countries without stable currencies.•   What autonomy Yomi’s company has over governance, and how it benefits the new city.•   How government regimes differ and what the varying effects on market demand have been.•   What it means to create a city culture and steps Yomi has taken to develop it. Links Mentioned in Today’s Episode:Yomi Ademola on LinkedInRendeavourAlaro CityRenaissance CapitalTatu CityRoma ParkKiswishiCityscape PlanningSkidmore, Owings & Merrill

As the political landscape in Hong Kong shifts, many residents are looking to migrate to Western countries. This creates immigration problems, especially as some Hong Kongers won’t meet the investment requirements needed to move to cities with established Hong Kong expat communities. Today’s guest, Ivan Ko, is the founder and CEO of Victoria Harbour Group, an organization with the bold idea to create international charter cities in Western countries for Hong Kong immigrants to move into. Our conversation begins as Ivan explains the benefit his proposed charter cities will have for their host countries. Built in areas with low local populations to minimize disruption, each city will aim to fit an economic niche. We discuss why this might be an attractive proposition considering the economic downturn due to the COVID-19 pandemic. Ivan discusses the challenges of building charter cities and reveals that, despite immigration being a hot-button political issue, the perception of Hong Kong residents as industrious and highly educated has added political support to the idea of migration. We speak about how the people of Hong Kong have a unique identity that allows them to easily assimilate into Western systems. After sharing the inspiration for his idea, Ivan draws historical comparisons between the Puritans arriving in America on the Mayflower and how many Hong Kongers will migrate to pursue democracy and freedom. Throughout the discussion, Ivan highlights how his charter cities will benefit locals. At the end of the episode, Ivan shares his thoughts on what makes a livable city, Victoria Harbour Group’s role in developing charter cities, and how their model is influenced by Silicon Valley. Reflecting Hong Kong’s meteoric rise, Ivan wants each charter city to be a ‘miracle city.’ Listen to this episode to learn what that might look like.Key Points From This Episode:•   Ivan’s mission — to build a city for Hong Kong migrants in a democratic country.•   Why so many Hong Kong residents want to migrate to other countries.•   Ivan explains the economic benefit that this new city will have for its host country.•   The benefits of migrating to Ivan’s city as opposed to cities with existing expat communities.•   Why Ivan has an urgent timeline to complete the first international charter city.•   What we can expect regarding the scale of each international charter city. •   The critical factors involved in choosing a site to build each city.•   How Hong Kong’s ‘brand name’ has been crucial in generating political support.•   How an international charter city might be a solution to mass migration.•   The dangers of over-planning a city and how this can affect a city’s livability.•   Detailing the sectors in which Hong Kong migrants can help local economies.•   How Hong Kong migrants might specifically benefit the U.S. economy.•   Why Hong Kong values lead to an easy assimilation into Western systems.•   Learn why Ivan thinks that this is the best time to start creating charter cities in the West.•   Ivan shares his experiences and what led to the idea of having a Hong Kong charter city.•   How Ivan responds to scepticism and naysayers who don’t believe in his project.•   Ivan discusses the challenges facing the establishment of charter cities.•   How crucial Ivan’s high-caliber, talented staff are going to actualize his plan.•   Ivan’s model; a hybrid between a tech startup, and a city development business•   Why developing charter cities should not affect Hong Kong or mainland China.•   Elements and systems needed to create a working charter city.•   Hear what one of these international charter cities might look like.•   What factors make for a livable city; walkability, community interaction, and beautification.Links Mentioned in Today’s Episode:Ivan Ko on LinkedInCharter Cities InstituteCharter Cities Institute on TwitterCharter Cities Institute on FacebookPaul Romer on Charter Cities and What We’ve Learned Since ThenPaul RomerThe Long-term Stock ExchangeAndreessen HorowitzDr. Simon Shen — Victoria Harbour Group Co-founderHow Britain could become home to a new Hong KongSamuel Lai — Victoria Harbour Group CFOAECOMKelvin Kwok — Victoria Harbour Group CIO and COOLarry PageMark Lutter on Twitter