Charter city (economic development)

A charter city is a type of city in which a guarantor from a developed country would create a city within a developing host country. The guarantor would administer the region, with the power to create their own laws, judiciary, and immigration policy outside of the control of the host country.

For charter cities as a form of local government in many U.S. states, see Charter city. For city status conferred by Royal Charter in the United Kingdom, see City status in the United Kingdom.

Charter cities were proposed by economist Paul Romer, in a 2009 TED talk.

According to Romer, international charter cities would be a benefit to citizens by giving them an additional option about what system of economic policies they want to live under. In his vision, charter cities would adopt more pro-business policies than the host country, including lower taxes, fewer regulations, and protection of property rights, which would encourage international investment. Romer gives Hong Kong as an example, which he argues encouraged economic growth.

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