Trying to end poverty through well-founded charter cities | Mark Lutter & Tamara Winter (2019)

Charter cities are proposed as a solution to poverty and a means of governance reform. The Center for Innovative Governance Research (CIGR) aims to create charter cities by bringing together stakeholders, such as government officials, developers, and entrepreneurs, to create a common understanding of charter cities and facilitate collaboration.

Charter Cities Definition

• 00:02:09 Charter cities are new cities with new jurisdictions, offering a mechanism to implement governance reforms in countries with poor governance, particularly in areas without established special interests. The goal is to create a more favorable environment for economic activity, which can then be adopted more widely.

Charter Cities Compared to Special Economic Zones

• 00:20:17 Charter cities are viewed as the next generation of special economic zones, going beyond the single-industry focus of typical zones. They involve a comprehensive redesign of the institutional and governance structures to facilitate long-term economic growth, rather than short-term gains.

Charter Cities Compared to Seasteading

• 00:21:38 Seasteading, which focuses on building new cities on the ocean, is seen as a different approach, with greater emphasis on sovereignty and a more aggressive posture towards existing institutions. The Center for Innovative Governance Research believes it's more effective to collaborate with existing institutions and focus on commercial law rather than criminal law.

Charter Cities Compared to Private Cities

• 00:24:28 Private cities, developed by private developers, lack the new jurisdiction aspect of charter cities and are essentially large real estate projects with some local governance structures. They are not seen as a significant driver of long-term economic change.

CIGR's Approach to Charter Cities

• 00:15:33 The Center for Innovative Governance Research (CIGR) aims to build the ecosystem for charter cities by bringing together diverse stakeholders, including Silicon Valley entrepreneurs, policy experts, and humanitarians. CIGR has three main programs: content (podcast, blog, research), events (connecting stakeholders), and collaboration (working with projects on the ground).

CIGR's Work in Zambia

• 00:16:59 CIGR is currently working on a project in Zambia, called Nkwashi, which involves building a new city for 100,000 residents. The project aims to increase economic activity and provide a buffer against copper price fluctuations. CIGR is working with the developer and the Zambian government to define and implement the charter city concept.

CIGR's Role in Supporting Charter City Projects

• 00:17:56 CIGR's role is to act as a facilitator and resource provider for charter city projects on the ground. They connect different stakeholders, provide guidance, and help with navigating legal and political complexities. CIGR aims to create a scalable model that can support numerous charter city initiatives.

CIGR's Use of the Term 'Charter Cities'

• 00:22:01 CIGR prefers the term 'charter city' over 'special economic zone' to emphasize the comprehensive approach to governance reform and long-term growth, rather than a single-industry focus or marginal improvements.

Charter Cities on the Political Spectrum

• 00:30:22 The idea of charter cities transcends traditional political divisions, offering potential benefits for both right-wing and left-wing perspectives. Right-wingers interested in immigration restriction might see charter cities as a way to promote growth in low-income countries. Left-wingers might see it as a cost-effective mechanism for reducing global poverty.

Challenges and Concerns with Charter Cities

• 00:51:39 The biggest concerns with charter cities include the ability to create them, the commitment of host countries, and the potential for exploitation of less productive members of the population. There are potential solutions for these concerns, such as international treaties for asset protection, aligning the interests of host countries and charter cities, and creating a system for providing for those who may be less productive.

The Role of Government in Charter Cities

• 00:56:00 The proposed governance structure for charter cities involves a special administrative jurisdiction that operates independently of the host country's government, with a focus on commercial law. This body would work closely with the developer to provide public goods. Leasing rather than selling land to developers can ensure long-term alignment of interests.

The Potential for a Cascading Effect with Charter Cities

• 01:17:44 Successful charter cities have the potential to create a cascading effect, inspiring other countries to adopt similar models. However, it's important to present charter cities in a clear and consistent way to facilitate understanding and replication. Networks and information sharing are key to facilitating this process.

The Importance of Local Expertise

• 01:19:51 While CIGR believes that Mark Lutter's ability to bridge different stakeholder groups is essential, they recognize the importance of local expertise. CIGR works with locals in Zambia and Honduras to navigate local politics and build relationships with relevant actors.

CIGR's Approach to Stakeholder Engagement

• 01:40:02 CIGR employs a multi-pronged approach to stakeholder engagement, involving direct conversations, media outreach, and relationship-building. The goal is to create a network of stakeholders who are aware of and supportive of charter cities. CIGR believes that establishing itself as a trusted resource for charter city information is crucial.

CIGR's Goals and Strategy

• 01:47:44 CIGR has set ambitious goals for the next three years, including the incubation of 15-20 charter cities and building relationships with half of the heads of state worldwide. Their strategy involves working backwards from these goals, setting monthly and weekly targets to ensure consistent progress.

CIGR's Approach to Funding

• 02:14:43 CIGR prioritizes building political support for charter cities, seeing NGOs as the most effective way to address this challenge. Once political hurdles are overcome, CIGR will focus on building talent and financing pipelines. Currently, CIGR relies on high-net-worth individuals as primary donors.

CIGR's Approach to Hiring

• 02:15:13 CIGR is currently seeking a Director of External Affairs and a Director of Development to expand their reach and fundraising capabilities. They are also open to hiring junior roles, such as research assistants. CIGR's hiring process is selective, seeking individuals with specific expertise in international development, real estate, and finance.

CIGR's View on the Nonprofit Sector

• 02:21:57 CIGR believes that traditional funding structures within the nonprofit sector can be a constraint for new ideas and organizations. They advocate for more flexible funding models and social enterprise approaches to support innovative projects.