Law & Politics

Are Charter Cities Innovation Theatres or Threats to State Sovereignty? The Example of Honduras’ Próspera

Published:
2025-12-30
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Manzinger, K. (2025). Are Charter Cities Innovation Theatres or Threats to State Sovereignty? The Example of Honduras’ Próspera. Pro Futuro, 15(2). https://doi.org/10.26521/profuturo/2025/2/17018
Abstract

In Honduras, the corrupt elite that came to power after the 2009 military coup allowed foreign investors to create special economic zones in the country as part of a new economic stimulus package. These zones were allowed to create their own private legal framework, which Tegucigalpa hoped would improve the country’s economic situation. The most famous ZEDE implemented has been Próspera, which is mainly backed by US venture capital managers. After the Honduran legal framework on ZEDEs was repealed in 2024, a certain amount of uncertainty arose, as although investments are protected for 10, or 50 years, the hostile social and political environment might pose a significant obstacle to their continued operation.