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A charter city is a new city granted special jurisdiction to create a new governance system and enact policy reforms.
Charter cities can help improve governance in a limited geographic area by giving local officials authority to implement best legal and administrative practices and commercial regulations. This can help create a competitive business environment that attracts investment and accelerates economic growth in developing countries to help them achieve prosperity faster than ever before.
Governance is a key determinant of a country’s economic trajectory. Unfortunately, politics often prevents needed reforms from being implemented at the national level. Because charter cities cover limited geographic areas, their administrations can pursue deeper reforms than would otherwise be possible.
Charter cities are not an entirely new idea. Shenzhen, Hong Kong, Singapore, and Dubai demonstrated that by pursuing different developmental strategies, it’s possible for cities to leverage urbanization to grow from impoverished to world-class cities within two to three generations. Learning from these successes, CCI has developed a replicable model for charter cities that can be implemented in low-income countries, serving as the foundation for economic success.
Charter cities are not an entirely new idea. Shenzhen, Hong Kong, Singapore, and Dubai demonstrated that by pursuing different developmental strategies, it’s possible for cities to leverage urbanization to grow from impoverished to world-class cities within two to three generations. Learning from these successes, CCI has developed a replicable model for charter cities that can be implemented in low-income countries, serving as the foundation for economic success.
Each charter city and their governance system would be unique, but the Charter Cities Institute recommends this as the overarching model.
Situating a charter city on an undeveloped greenfield site allows city developers to avoid political challenges of implementing changes in an existing city. Funding to purchase and develop the site comes largely from private investment to limit financial risk of the host country.
Creating new administrative entities to help establish city services, pass city laws and manage city functions, while escaping organizational challenges afflicting many governments in the Global South. Forming a public-private partnership (PPP) between the host government and the city developer to ensure incentives are aligned for long-term success.
Giving broad legal and administrative autonomy to city officials to pursue good policies at a local level in all areas except for criminal law, constitutional law, and international treaties. Starting from a blank slate to create new laws involving areas such as business and land registration, taxes, dispute resolution, immigration, labor law, and more.
Promoting the speedy resolution of conflicts and business disputes by establishing a court system or independent judiciary.
The world is projected to add 2.5 billion more urban residents by 2050. Much of this growth will be concentrated in the Global South, but many of these cities and governments struggle to meet the challenges posed by this rapid urbanization, lacking critical infrastructure, jobs, and effective governance for economic development. This leads to continued slum growth and poverty, poor living conditions, and limited job potential for city residents. Charter cities can help.
60% of the world’s population will be living in urban areas by the end of 2030.
Research has shown governance and effective institutions are key factors for long-term economic development and major determinants of a country’s standard of living. Improving institutions is one of the most effective ways to lift people out of poverty.
Charter cities can improve governance by giving local officials authority to implement reforms, laying the foundation for economic success. This will help create a competitive business environment, attract investment, foster entrepreneurship and create more jobs, manage rapid urbanization, improve infrastructure and accelerate economic growth in developing countries, and therefore, improve the livelihoods of residents.
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The Charter Cities Institute is a 501(c)3 nonprofit dedicated to empowering new cities with better governance to lift tens of millions of people out of poverty.
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