Assessment of Paul Romer's Charter City

Charter Cities, modelled after Hong Kong or Shanghai, can foster development in third world countries, suggests eminent scientist Paul Romer. It is basically a neo-colonialism: a piece of land in a third world country is given to a first world country to create a charter city to establish the rule of law. That city then will have a secure legal system for investors and an access to third world cheap labor. People who will be in this charter cities will live out the tragedy of their existence in a place where wise political institutions largely suppresses crime, tyranny and war; where they are well poised to enrich themselves through voluntary cooperation and peaceful exchange; and where they have access to all the social and spiritual advantages of a civilized urban life.

We can say that Paul Romer’s charter city is indeed a great idea. We agree that the right set of rules will help success rather than vague and informal rules which are too easily bent by those who have the power and interest to do so. And it is quite easier to design an applicable set of rules over a small territory with a small population compared to an entire country. It sounds good on the surface but here's the problem. There is no true innovation here in terms of ways of living, just a new set of rules for living the same basic way. 

In this, Paul Romer recognizes the lack of progress and innovation in government. His ideas are attempts to move forward a critical institution that has fallen behind in development. And to this, we could say that Philippines can use this idea.

Now-a-days, the Philippines is facing the big problem of poverty among its people. And the government should find ways on how to solve this and give its people a better life and a better place to live in. Paul Romer’s charter city could be of help to solve this problem. The piece of land that will be controlled and enforced by an outside country may help in the economic improvement of the Philippines. And our country may have a city that will be as successful as or even more successful than Hongkong and it may be the way for the Philippines to be known to other countries and it may also help to increase the profit generated by our country.

  Another issue is that, some people who have the power and political influences that should be taken into consideration about this idea may not be in accordance with this proposal. And they may not support and engage themselves for developing it further. We cannot stop others from opposing this idea. As for all other proposals for economic development, we cannot prevent that there will always be some that will not be in favor and they will make ways for it not to be realized. This people might have different perspectives or they just want better ideas and they don’t think that this is already the best thing to do. So there should be other alternatives.

If this proposal would be favored, the right people should be chosen to make it a reality. One of the reasons why there is a vast poverty in the Philippine is corruption. So the government should make sure that the budget that will be allocated for this project will not be handled by corrupt people and that the Filipinos in general will be the ones that will truly benefit from this not those fat crocodiles only making themselves fatter through their positions.