Honduras (yes, tiny Honduras) took a bold step earlier this year which could alter its economic trajectory and potentially impact the rest of Latin America. Frustrated by a lack of results from economic liberalization and free trade agreements which have been thwarted by cronyism, corruption and a lack of competitiveness, the Honduran Congress passed a constitutional amendment in January giving the government the power to create special development regions, or Charter Cities, which will have their own legal jurisdiction, administrative systems and laws. Charter Cities are created with a governing system defined by the city’s own charter document rather than by state, provincial, regional or national laws. The most recent examples include Hong Kong and Shenzen in China but the history of cities based on a unique governing charter goes back to the 12th century founding of Lübeck, a prosperous trading outpost in northern Germany. Continue reading