Charter Cities Podcast

Venture capital and charter cities are an unlikely pairing, but it’s one that presents interesting possibilities. Today's guest, Patri Friedman, is the founder of Pronomos Capital, the Seasteading Institute, and a veteran in the charter city and competitive governance space. We kick off the show by learning more about Pronomos Capital, and why Patri decided to start a venture fund dedicated to charter cities. With his Silicon Valley experience, Patri brings a unique approach to charter city thinking. From there, we discuss some of the factors that have led to the charter city movement gaining traction, including shifts in government and investor mindsets. After this, we dive into the Seasteading Institute and what spurred Patri to establish the organization. We then delve into founding a charter city. While there are capital constraints, Patri believes that the shortage of capable founders is one of the biggest obstacles in the space. Founders need to have a unique skill set, where they are visionaries along with some on-the-ground, embedded local knowledge. Next, we look at how charter cities overlap with and diverge from Western governance models and how they can apply lessons as best practice. We round the show off by discussing some of the opportunities that COVID-19 has created in the charter cities space, what’s in store for charter cities in the next five years, and what Patri’s most excited about. Be sure to tune in today!Key Points From This Episode:•  Learn about Pronomos Capital, the first venture fund dedicated to charter cities and its motivation.•  Why Patri believes that the legal system of a charter city is similar to low marginal tech.•  The shortcomings of viewing governance as a product rather than a service.•  Why Patri believes the charter city movement has gained the traction it has recently.•  Changes Patri has seen in the charter cities VC space over the past two and a half years.•  How the shifts in thinking about charter cities have happened for investors and countries.•  Seasteading’s founding story, some of Patri’s influences, and the institute’s mission.•  Why good founders — and not capital — is the major binding constraint Patri sees.•  Some of the characteristics needed for a great charter city founder.•  What charter city would-be founders can take from successful startup founders.•  The importance of a roadmap and more educational materials in the charter city space.•  Insights into the potential industrial organization of charter cities and influencing factors.•  How Pronomos approaches early-stage valuation for charter city companies.•  Learn more about floating cities and why they need high economies of scale to work.•  Charter cities versus western governance: Where it overlaps and where it diverges.•  Patri’s take on overcoming the first-mover challenge.•  Thinking about charter cities in high-income countries and some obstacles that come with it.•  How COVID-19 will shape emerging markets in the short and long-term.•  What’s on the horizon in the charter cities space in the next five years.•  Find out some of the projects that Patri is most excited about. Links Mentioned in Today’s Episode:Patri Friedman on TwitterPronomos CapitalThe Seasteading InstitutePaul RomerAyn RandSeasteading: A Practical Guide to Homesteading the High SeasPeter ThielScott Adams on TwitterGarden Cities of To-MorrowY CombinatorJames BuchananThe Size of Nations

Joining us on the show today is geopolitical strategist, speaker and author, Peter Zeihan! Our conversation spans a wide range of connected topics, centering on the immediate future facing the United States and the global economy, with particular attention given to the question of China. Peter holds a somewhat less common position on China's supposed power, arguing that the country is a paper tiger, waiting to ignite. He does a clear job of explaining this perspective and how so many casual theorists seem to have got it completely wrong. Drawing the argument back to the US, Peter then explains the stability, even in today's chaos, that the country has and by extending his scope to Europe and the Middle East, he shows the huge part that geography plays in the unfolding of political and economic power struggles. We discuss the examples of France and Germany, as well as outlying African countries and Peter underlines the central part that geography and access play in all of their destinies. Bringing the conversation firmly into the present, we then consider the role of technology and particularly the latest tech innovations in possibly disrupting the established order that Peter is describing. According to our guest, even AI and the rest of the digital revolution is not yet enough to overhaul the legacy of the industrial revolution and it will still take many further developments for this to occur. We get into the question of the global economy and the trajectories of the world's strongest currencies; again Peter demonstrates why America's positioning will allow it to be non-reliant on others, a definite strength moving into an uncertain age. For a fascinating chat, and a brilliantly articulated argument you may have not encountered before, join us on Charter Cities today!Key Points From This Episode:•   The coming global disorder and the focus of Peter's latest book Disunited Nations. •   Considering different theories of the current global economy and trade. •   Ideas of China's growing economic and militant power and the holes that exist in these theories.•   China's political immaturity and fallibility and what a spectacular fall might look like.•   The part that geography plays in the unfolding events in China and the rest of the world.•   Europe's outlook; geography and the areas that have historically lent themselves to control.•   The role of technology in disrupting the deterministic power of geography in European development.•   American geography and the coincidental advantage that it offers the country.•   The power of shale gas and how this can affect the US' need for involvement in foreign energy markets.•   A future where the US disengages from relationships with the rest of the world.•   The links between culture and geography and how this influences technological adoption.•   Technology and geography and what this combination means in a modern, AI context.•   The limits of the digital revolution in heralding a new age.•   The interesting example of India; population, poverty, positioning, and continuity. •   Looking at the Saudi Arabian economy and their dysfunctional education and military systems.•   The broader Middle Eastern dynamic and looming conflicts.•   Expectations for Africa and the lasting effects of coronavirus on immigration.•   The two paths for Africa's continued industrialization and how they diverge.•   Currency flows, the ultimate power of the dollar, and the trajectory of other historically strong currencies.•   Human capital and looking to the examples of Israel and South Korea as outliers.•   Long-overdue shifts in the American political system and where this is leading. •   The future of the nation-state and possible neo-imperialism.  Links Mentioned in Today’s Episode:ZeihanPeter Zeihan on TwitterThe Accidental SuperpowerThe Absent SuperpowerDisunited NationsTrumpAdam SmithElon MuskEnronMalthusMubarak

The Nigerian economy is complex and multilayered, with many opportunities and hurdles for its people. Joining us on the show today to discuss the economic landscape of Nigeria, the charter city project of Talent City in Calabar, and what it really means to provide opportunities to the Nigerian people, is entrepreneur Iyinoluwa Aboyeji! We have a fascinating discussion around the ways the Nigerian market operates and the types of entrepreneurship and business-mindedness that are found in the country. Iyinoluwa sheds light on what he calls survivalist entrepreneurialism and explains a few different perspectives on Nigerian aspiration inside and outside of the country. One of the most notable points that our guest makes is the stark difference between the American concept of monopolies and Nigerian 'competition trees'. From there, our conversation turns to Iyinoluwa's own professional experiences and work at Andela and Flutterwave. We also get into his education and faith before looking at the political picture in Nigeria and what this means for young business owners. We discuss the Chinese presence in Africa, feelings about this, and of course the impacts of the COVID-19 pandemic. The last part of our conversation is spent unpacking Iyinoluwa's work on the Talent City Project and his hopes for this new charter city! Intended as a specialized tech hub away from over-crowded Lagos, Iyinoluwa hopes to attract young talent to the new space soon, with remote work being a big draw for the model. For this great chat with Iyinoluwa, be sure to join us on the Charter Cities Podcast, today!Key Points From This Episode:•   The entrepreneurial spirit in Nigeria; the influence of the emerging market and a large population.•   Competition trees and the spread of resources and opportunity in Nigerian business.•   Nigerian-American professional trajectories and entrepreneurial side-hustles.•   Iyinoluwa's experience founding Andela and the initial idea behind the company.•   Cultural education and soft-skills at Andela and how they used improv for these purposes.•   Iyinoluwa's thoughts on finding and hiring talent and his work at Flutterwave.•   Pitching Nigerian companies in the US and the right way to communicate this.•   The growth of Nigerian and African companies that can extend into the US and European markets.•   The influence that Iyinoluwa's faith has played in his entrepreneurial pursuits.•   Iyinoluwa's entrepreneurial advice around providing dependability in the face of failing political systems•   Ethnic divisions in Nigeria and how this plays into power structures in the country.•   Age demographics in Nigeria and the aspirations and realizations of the current youth. •   The Chinese influence in Nigeria and the perception of this among locals.•   The pandemic in Nigeria and considering the effects of COVID-19 in emerging markets.•   Lasting implications on dropping oil prices for African economies.•   Considering different models for charter cities in Nigeria and how they would operate.•   Government and leadership in Lagos; managing the challenges of infrastructure and congestion.•   Iyinoluwa's role in the development of Yaba in Lagos and the lesson he carries forward.•   The vision for the design of Talent City; a charter city for harnessing tech talent.•   Initial pushes for new residents and the intended strategy for filling Talent City.•   The remote work model and thinking about the impact of the current health crisis.Links Mentioned in Today’s Episode:Iyinoluwa AboyejiIyinoluwa Aboyeji on TwitterIyinoluwa Aboyeji TEDx TalkDangoteBUALafargeZoomAndelaFlutterwaveUniversity of WaterlooVelocity ProgramBlackberryPeter ThielVidyardAtomic LabsEthereumJeremy Johnson2ULambda SchoolPlatoUberStripeCalendlyJack MaKoch BrothersDonald TrumpBelt and RoadThe GuardianUniversity of LagosCharter Cities InstituteMark LutterCharter Cities Institute on TwitterCharter Cities Institute on Facebook

Nkwashi is a private charter city that is currently being built in Zambia to house around 100,000 residents on completion. Our guest on the show today is Mwiya Musokotwane, the co-founder and CEO of Thebe Investment Management, a Zambian private investment firm that is the developer of Nkwashi. He is here to talk about this project and the challenges and aspirations involved specifically, as well as those more broadly positioned in an African context. We look at questions of what it means to create a private city, getting an economy started and the key factors that need to be addressed for Africa's economic future. Mwiya gives us some insight into the timeline of building Nkwashi and why building a charter city takes longer in developing economies. We discuss financing and the ways that the project has been laid out to pay for itself over the next ten or so years. The conversation also covers skills development, talent attraction and culture building and we look at how cities and companies both do this as well as the clear differences. Mwiya makes a strong argument for the role of institutions and networks in establishing the overarching culture of a city, something that he has very certain aspirations about for Nkwashi. The conversation also covers the focus on technology as Nkwashi's main industry and attraction, and we unpack the mercantile model that is planned. Listeners can look forward to hearing about a future city, some great perspectives on African economies and the challenges that face a project of this size. Mwiya also explains what he admires about Singapore and the lessons he has learned from their example, so tune in to hear all this and more!Key Points From This Episode:•   An introduction to Nkwashi, a private city and satellite to Lusaka.•   The basics and timeline of building a satellite city in Africa. •   The housing and service deficit in Zambia and how Nkwashi offsets this.•   Financing a costly venture of this type; commercial sales and payment plans for units.•   Mwiya’s background in research and economics and how these skills inform his current work.•   A preferable model for talent attraction and development: training from a junior level.  •   The construction of Nkwashi and the division of labor between internal and external sources.•   Comparing the development of a culture within a team and a city.•   The values that Mwiya wants to promote in Nkwashi, dynamism, openness and more!•   The central role of institutions and networks in growing a city's culture. •   Reasons to focus on technology as the anchoring tenet in Nkwashi; wage arbitrage and the global economy.•   Benefits of mercantilism and placing Nkwashi within the context of the larger Zambian economy.•   Interfacing with the Zambian government; what Nkwashi's relationship will look like.•   Why Augustus would build a good charter city!•   The evolution of Mwiya's philosophy towards city development and urban planning.•   Mwiya's appreciation for Singapore and the points that impress him most.•   The constraints of capital and talent access in Zambia and Africa.•   Challenges specific to Africa and the dangers of special economic zones.•   A critique of Silicon Valley's city-building project; positives and negatives.•   The projected growth of urban populations in Africa and the potential impacts of this.•   Mwiya's thoughts on getting African countries to a state of 7% GDP growth.•   Chinese involvement in Africa and the infrastructure that is being built.•   Mwiya's work schedule and the different modes he works in throughout the week. Links Mentioned in Today’s Episode:Mwiya MusokotwaneNkwashiExplorer AcademyMwiya Musokotwane on TwitterThebe Investment ManagementCharter Cities InstituteMark LutterCharter Cities Institute on TwitterCharter Cities Institute on FacebookWhat You Do Is Who You AreBen HorowitzRoss DouthatThe Decadent SocietyCecil RhodesBelt and RoadOPEC

For today’s episode, we discuss urban planning with Alain Bertaud, senior research scholar at NYU’s Marron Institute and the author of Order without Design: How Markets Shape Cities. Our conversation covers many subtopics under the central theme of the processes that allow cities to come into being and be maintained. Cities – healthy ones at least – are in essence the products of spontaneity, compositions of ever-changing movements dictated by the connections between the people who live in them, and we consider how planning can accommodate this reality. One of Alain’s central hypotheses is that labor markets are the foundation of cities and the idea that good transport and service-based approaches to planning will produce healthier labor markets. This idea penetrates much of the conversation with Alain today and we hear his thoughts on topics like which cities had labor markets and which didn’t, why some cities die and others keep surviving, why some shape history and others don’t, the best ancient cities, and how one might approach the construction of a master-planned city. We consider two models that mayors could follow, that of the janitor and that of the CEO, with one focusing on service and the other, a grand vision. We consider which of these two models best serve cities concerning their fundamentally spontaneous nature. Alain also weighs in on the idea of negative property rights, Haussmannian and Schumpeterian approaches to planning, and the future of transportation in relation to a city’s ability to develop organically. We wrap our conversation up with a focus on charter cities, looking at how to fill up a space that is not a destination in and of itself yet. Catch our conversation today for wide-ranging and incisive observations on the nature of cities with our wonderful guest.Key Points From This Episode:•   A definition of labor markets as places of freedom to select your job or employee.•   The idea that labor markets are the foundation of cities.•   Examples of cities not based on labor markets where workers had no choice regarding work.•   A planning error: placing housing next to jobs, thus threatening the labor market.•   US and Chinese cluster cities/fragmented labor markets; integrating them using transport.•   The limits of the bus/drive/subway system to cope with urban sprawl.•   Getting past oversimplified understandings of cities having one industry like tech or finance.•   A conception of a mayor’s job as being to enable rather than direct a city’s labor market.•   How land use is not recycled in non-labor market cities in China and the Soviet Union.•   New transport models like Uber and Hyperloop, which have the power to change future cities.•   Whether coronavirus’ high toll on dense places will stop them from existing in the future.•   A consumer’s right to make tradeoffs between commute time and floor space area.•   The best ancient cities and Alain’s belief that different cities are preferable to different people.•   Important contributions Haussmann made to Paris’ navigability, notwithstanding his motives.•   Freedom, exchange, commerce, and why some cities produce a higher cultural output.•   An argument for having large municipalities for coordinating efforts more effectively.•   Paralysis caused by a dilution of property rights and elevation of negative property rights.•   Pros and cons of China’s good technicians operating within a command economy.•   Why informal economies exist and how some have been absorbed by formal ones.•   Reasons why some cities collapse: bad management, changing trade routes, and more.•   Alain’s book’s name; cities are spontaneous and thus incomprehensible to planners.•   The danger of master-planned cities which can’t accommodate feedback during construction.•   Key buildings and public/private boundaries as vital initial parts of a city’s plan.•   Curbing real estate developer approaches to building by assigning people small lots.•   NIMBYs and when it could be considered moral to protest against developments.•   Why Robert Moses is not the Haussmann of New York; Schumpeterian action.•   Whether charter cities can still be made and how Dubai became more than a fueling stop.•   Differences between ‘Dubai clone’ or ‘Shenzen clone’ charter cities.Links Mentioned in Today’s Episode:Alain BertaudThe Marron InstituteOrder without Design: How Markets Shape CitiesAdam SmithHyperloopPaul RomerPrinces and MerchantsTitianCharles VFriedrich A. HayekAdam FergusonRobert MosesJane JacobsPaul RudolphAu Bonheur des DamesCharter Cities InstituteMark LutterCharter Cities Institute on TwitterCharter Cities Institute on Facebook

For our first full episode of the Charter Cities Podcast, Mark is joined by Gyude Moore to discuss his experiences in and the history of Liberia, and what this story can teach us about charter cities in Africa and emerging markets. Gyude takes a brief look at the defining moments in Liberian history for this discussion, mentioning the population that arrived from America in the 1800s and the civil war he was born into at the end of the 20th century. We hear more from his personal story of moving to the US for college and then returning to a governmental position thanks to the Scott Family Fellows program and how this turned into a role as the Minister of Public Works. Gyude comments on the characteristics of the Liberian government at this time and the systems and attitudes that halted progress and reduced funds. From there, we move into Gyude's main passion and argument, that paved roads make up the backbone of any economy, a technology that has become completely commonplace in most of the Western world and the dearth of which results in much of Africa's economic stagnation. Gyude makes the connection between the US' reliance on the road network for so much of their strong economy and then compares this with Africa's road infrastructure, concluding that Africa can never progress without better, paved access between cities and hubs. The later part of our conversation moves into a discussion on Chinese involvement in Africa, the Belt and Roads Initiative and how Charter Cities might aid the propulsion of African economies in a way that other means might not. Gyude is a passionate and experienced planning mind, with lots to share from his native Liberia and beyond, so tune in to get it all!Key Points From This Episode:•   The influence of the end of the American slave trade on Liberian history and culture.•   Gyude's early years, growing up during the Liberian civil war.•   Comparing the encroaching civil war in Liberia to the current spread of the coronavirus.•   The influx of people into Monrovia at that time and the strain it placed on infrastructure.•   Gyude's move to the US for college and landing in Baltimore to an unexpected reception.•   Heading home to Liberia and the program that recruited Gyude to work with the state.•   The period in which Gyude took up a position as Minister of Public Works.•   Entrepreneurial spirit in government; aspirational work in the public sector in Liberia.•   Gyude's experiences of corruption in Liberia's emerging market.•   Cultural and mindset shifts for better long term benefits and installing systems in chaos.•   The technology of paved roads and what it enables a government and population to achieve.•   Gyude's idea for the incentivized development of cheaper materials for paved roads.•   Enforcing accountability for government projects, initiatives and funds. •   Gyude's critique of the Belt and Road Initiative and estimates of necessary funds.•   Assessing the involvement of China in Africa and the debt that is already present.•   The importance of planned cities in the lives of citizens and economic growth.•   Looking to the example of Asia and what Africa can and cannot learn from their model.•   The core of what appeals to Gyude about charter cities and how they can help.•   Risks that accompany the charter city model and the power of the host country.•   Skill sharing for the benefit of a local population; the rise in Africans hired by China.Links Mentioned in Today’s Episode:Gyude Moore on TwitterCharter Cities InstituteMark LutterCharter Cities Institute on TwitterCharter Cities Institute on FacebookECOWASECOMOGBerea CollegePresident SirleafScott Fellows ProgramEd ScottAfrobarometerIMFCARIJohns HopkinsBelt and Road InitiativeJ.P. MorganHow Asia WorksSADCPaul RomerBarrick Gold

We are so happy to welcome you to the Charter Cities Podcast, where we highlight the different facets of building a charter city. Through this platform, we hope that listeners will not only gain a deep understanding of charter cities from urban planning to politics and finance but also the necessary steps that it takes to build them. In this episode, we do things a bit differently, with Mark Lutter, founder of Charter Cities Institute, and host of the podcast getting put in the hot seat. His CCI colleague, Tamara Winter, interviews him on a range of topics, both directly and not so directly, related to charter cities. We learn more about the mission of CCI and why Mark believes that charter cities are a good model for economic development. While Paul Romer, famed economist, unsuccessfully tried to get charter cities off the ground, Mark explains why he believes CCI’s approach will ultimately be more successful. Mark also sheds light on how charter cities are complementary to but different from economic zones. While these delineated areas are often politically motivated, the vision behind the charter city is much broader than that. CCI hopes to contribute to aspects such as site selection, urban planning, and governance, and in doing so, take a holistic approach to building a new city. Mark also discusses what it takes to build governance capacity, some of the charter city constraints, and how partnerships helped him launch CCI. We learn more about Mark as well, from some of his favorite books, the African cuisine that’s made the biggest impression on him, and how he has carried the lessons from his federal bureaucratic parents with him. We couldn’t have hoped for a better first episode, and we hope you join us for the journey to come. Tune in today!Key Points From This Episode:•   The two ways that CCI’s attempt at creating charter cities is different from Paul Romer’s.•   Why Mark is skeptical about using services as a means of building charter cities.•   Find out how charter cities are similar to and different from special economic zones.•   How regulatory arbitrage can produce favorable outcomes and what CCI is doing about it.•   Charter cities need good urban planning and infrastructure in conjunction with good governance.•   Two of Mark’s favorite books that he’s read related to places he has been.•   How growing up with parents who worked in federal bureaucracy has shaped Mark.•   What industrial policy is and what charter cities should be cognizant of when pursuing it.•   Why, despite admiring China’s Belt and Road Initiative, Mark is cautious about it.•   An overview of Honduras' charter legislation and what went wrong in execution.•   Find out what it would take to build a government from scratch and successful examples.•   Which historical leaders would have been good charter city founders?•   Learn more about the constraints that charter cities face and how they’re likely to change.•   Why Mark would opt to build charter cities in Canada rather than the US.•   Mark's motivation for founding CCI and his proudest CCI achievements thus far.•   Find out about the two key partnerships that helped Mark launch CCI.•   Why the state shouldn’t be trusted with industrial policy.•   What Silicon Valley is not understanding about politics and how they can change it.•   Mark’s favorite non-charter city books and what we can learn from historical eras.•   An overview of the Hanseatic League and how it can be used as a governance model today.•   How Mark’s thinking about charter cities has changed since founding CCI and how listeners can get involved. Links Mentioned in Today’s Episode:Mark LutterMark Lutter on TwitterMark Lutter EmailTamara Winter on TwitterCharter Cities InstituteCharter Cities Institute on FacebookCharter Cities Institute on TwitterPaul RomerNkwashiThe Day Lasts More than a Hundred YearsDance of the JakarandaDani RodrikMarginal REVOLUTIONTyler Cowen on TwitterNapoleonBooker T. WashingtonTuskegee InstituteCatherine the GreatWalt DisneyCelebration, FloridaSidewalk LabsAlphabet Inc.Scott AlexanderY CombinatorMwiya Musokotwane on TwitterBrookings InstitutionEnyimba Economic CityStudents For LibertyThebeEmergent VenturesThe Rise and Decline of NationsThe Three-Body ProblemThe Art of CommunityRevolutionsHanseatic League