Honduras had been a pioneer in experimenting with what were called ZEDEs—"Zones for Employment and Economic Development" in English translation. But last week, in a depressingly unanimous vote, Honduras' congress reversed the enabling law and constitutional amendment that made ZEDEs possible.
The ZEDE program was beloved by those in what's known as the "charter cities" space—those who try to propagate unique set-aside spaces with different rules, ideally ones more friendly to economic growth or liberty or both. (Those in the field tend to see the two as buttressing each other.) The theory behind ZEDEs had roots in the work of Nobel-winning development economist Paul Romer, on how institutions and laws were vital to sustainable economic growth.
