I recently reported about an exciting new project in Honduras, which would carve out a small part of the country and allow a private developer to build a city there -- one with a free market government and strong private property rights. (Video here.)
Unfortunately, the Honduran Supreme Court struck down that law this week .
Michael Strong, who had a tentative agreement with the Honduran government to build the city, says that the decision leaves "virtually no opportunity for new, innovative Honduran communities envisioned by the [Honduran law.]"
"We hope and expect that another country will choose prosperity over poverty, but for now advocates of poverty have won in Honduras," Strong says.
I wish him luck in finding other places to start a "free city." It has worked before. Hong Kong was once just as poor as Africa -- but thanks to a government that enforced property rights but did almost nothing else, it is now even wealthier than the United States.