Neo-colonial solution to 3rd world problem

CHARTER CITIES

The neo-colonial solution to 3^rd world problems

The policy and practice of acquiring full or partial political control over another country occupying it with settlers and enforcing economic and cultural reforms

This is the traditional definition of colonialism. However recently our tragic past has gotten a neat little makeover and has been rebranded as Charter cities. Charter cities allow developing countries to lease a certain amount of land to developed countries for a limited period of time. In this time period the developed country attempts to create economic progress by imposing their domestic laws on the citizens of the host country. These citizens unfortunately do not have the right to vote or the several other privileges that come with living in a democracy. However to dismiss Charter cities as modern day colonialism is also short sighted. It operates in a very different political landscape, where the rise and fall of different countries is as interlinked as ever. Everything from environmental degradation to access to international markets puts the developed and developing countries on the same boat. This is supplemented by the desire of countries like USA to establish their moral hegemony in the international arena as well.

Before we dive into this exceptionally convoluted and controversial topic, we should discuss the foundation of this concept. This leads us to post neo-classical endogenous growth theory, a term that resembles a child’s first time with a thesaurus. The growth theory details the importance of ideas (new technologies etc.) in gross domestic production. The economist Paul Romer (the Michael Jackson of economists all around), compared the GDP’s of two different countries. One country was developed, the other was developing. He concluded that only 50%of the difference in GDP can be ascribed to access to investment and resources, the rest was ideas.

THE KITCHEN METAPHOR

A useful Metaphor for production in an economy comes from the kitchen.

To create final products we mix inexpensive ingredients together according to a recipe. The cooking is limited to certain ingredients and produces some undesirable side effects. If economic growth could be achieved by doing more and more of the same thing, we would eventually run out of raw materials and suffer from increased pollution. Economic growth on the other hand springs from better recipes, not just more cooking. New recipes therefore spring economic growth. These new recipes could be new technology or a new laws and customs.

(This is a hypothetical example of a county called Wakanda that shows distribution as per Paul Romer’s endogenous growth theory and further classification of ideas as technology and laws)

There is a common saying that history repeats itself. This is proven to be true when we look for charter cities closer to home. India, being the hotspot of history and culture that it is, has also hosted different versions of charter cities. The most noteworthy being the presidency towns of east India Company, Madras, Calcutta and Bombay. These cities were under the control of the mercantile operation before the crown declared sovereignty over India. Therefore they were cities governed by East India Company while being a part of another kingdom.

There are two prominent almost charter cities in the present. Hong Kong and areas in Madagascar.

In Madagascar the president met with Mr. Romer almost finalized a deal conditional on Romer getting two foreign countries to promise investment. However very soon a military coup took place and the president was called a traitor and thrown out of office

The other city was Hong Kong. A vast major cosmopolitan city that flourished under English rule despite being in mainland china.

Another possible charter city being discussed nowadays is surprisingly located in Australia. Countries Singapore and Australia have remarkably well relations with each other. This factor along with Singapore’s paucity of land and Australia’s vast landscape has opened the gates to the possibility of a new charter city. Even now, Singaporean administration is discussing opening retirement homes in Perth. Will this transforms into a full-fledged charter is something only time will tell.

Several arguments can be made both for and against charter cities. 

Currently developing countries are desperately trying to provide basic facilities to its population. Hospitals, education and hygienic living conditions are goals for the third world countries that they are still striving to achieve.

Amidst these struggles re vitalizing the economy and sowing the seeds of urbanization seems like a farfetched neverlandish dream. The proposition of a symbolic and in some cases literal white knight can be exceptionally appealing. Even issues of investor confidence in developing countries is taken care of as they have teamed up with reputable countries with stable economies. This can even be the first step towards Cultural Revolution that pushes the youth to question their traditions and customs, when they see the absence of these customs lead to better quality of life.

However this story may not get its happy ending that easily. Charter cities may work as a theoretical concept but in reality they faces several problems.

1.     SUSPENSION OF DEMOCRACY

The citizens of the host country don’t actually have a right to vote. They are supposed to live in the cities under the governance of individuals elected elsewhere by the votes of other people. According to James comer, these people can vote by their feet, as in choose to live elsewhere, but that creates the problem of forced displacement.

2.     DIFFICULT TRANSITION

Paul Romer is living under the assumption that he is working with a blank slate while creating a charter city. However if he expects to create a city with the citizens of the host country he has to deal with the existing social and cultural systems in which they operate. Demolishing these systems means going against the entrenched interests of the population that may create resistance from the people living within the country.

3.     INSTABILITY

As seen by the case study of Madagascar, sometimes the governments of developing countries are not stable.  One military coup or assassination can put the entire project at risk stranding the foreign investment of developed countries in abandoned cities.

4.     RISK OF EXPLOITATION

The entire concept of charter cities is based on the assumption that the intentions of developed countries are pure and innocent. However certain countries can have extremely diabolical agendas. They can use the special jurisdiction of the carter cities to exploit natural resources or flout environmental laws of conventions like the Paris agreements or exploit cheap labour without respecting the rights it guarantees to its citizens but not citizens of country XYZ.

Charter cities is a new concept that tries like many of its predecessors to solve the issue of global poverty and economic growth using a smart and innovative process. However the problems of third world nations are extremely complex and don’t often get solved by overtly simplified solutions. It is presumptuous to blame the traditions and customs of these countries for all their problems. Economic Problems of third world nations range from overpopulation to competition from the advanced economies of the west. Even charter cities will have to face and overcome these obstacles in order to bring progress.

Though a nice idea in itself charter cities need a lot more refining before being suitable for real developing countries.