Paul Romer’s Bold New Idea for Charter Cities
The planet's population will swell by two to three billion people over the next few decades. Where will all those people live? My guest on this week's Global Prosperity Wonkcast has a bold new idea. Paul Romer is a senior fellow at the Stanford Institute for Economic Policy Research, a non-resident fellow here at the Center for Global Development, and one of the world’s leading growth economists. He is proposing brand new cities—he calls them ‘charter cities’—built from the ground up with sound rules designed to promote swift development.
The two ideas at the heart of Paul's proposal are, first, that good rules are fundamental to development and, second, that new cities might be able to draw their rules, people, and land from different sources. He argues that inadequate property rights, legal systems, and other types of rules hold back development in poor countries. If the residents of a poor country could choose to live in a new city, governed by the rules of a well-functioning country, they might benefit enormously. If good rules are in place, Paul says, where that city is located doesn’t matter much.
