Fox Business’ John Stossel knows better than the Honduran constitution and your Economics 101 class, he revealed over the weekend. The pesky Honduran Supreme Court recently ruled 13-2 that proposed libertarian utopia charter or “model cities” – called “free cities” by Stossel – would go against Honduras’ constitution. Remember, this is the same constitution which we have been repeatedly told “socialist,” “Chavez-ally” former president Zelaya was trying to subvert before he was bravely ousted in a coup by the Honduran military, leading to Honduras’ status as a beacon of liberty and human rights today. But sadly for Stossel and model city proponent Michael Strong, apparently the Honduran constitution and Honduras’ post-coup institutions are not as freedom-loving as they seemed during the military coup.
The Supreme Court ruling is a surprising blow to a project that has attracted much interest – and little skepticism – from media outlets such as the New York Times. “Freedom-haters” in Honduras meanwhile, such as Garifuna communities who say their land rights are threatened by a model city plan, were handed a significant victory in a country where the rule of law is weak are institutions are notoriously corrupt.
Previous backers of the “model city” concept – notably idea man Paul Romer – also recently walked away from the project, shocked at the lack of transparency and fair-dealing by the Honduran government.
“Honduran free city founder” Strong (who actually is from the U.S.) knows when he isn’t wanted. He’ll just find someone else who appreciates him and his ideas:
"We hope and expect that another country will choose prosperity over poverty, but for now advocates of poverty have won in Honduras," Strong says.
I wish him luck in finding other places to start a "free city." It has worked before. Hong Kong was once just as poor as Africa -- but thanks to a government that enforced property rights but did almost nothing else, it is now even wealthier than the United States.