Jun 17, 2010

Paul Romer and Madagascar

From a new article in Atlantic Monthly (via Laura Freschi at Aid Watch), we learn that Madagascar might have become the first testing ground for Paul Romer’s charter cities idea—if not for a coup that ousted the Malagasy President in March 2009:
Madagascar’s government was anxious to attract foreign investment, and it understood that a credibility deficit held it back… Faced with this obstacle, the Malagasy authorities were open to unconventional arrangements. To boost investment in agriculture, they were ready to lease a Connecticut-size tract of land to Daewoo, a South Korean corporation, for 99 years…Romer’s proposal fit in with these adventurous ideas.…
Romer made his pitch for a charter city, and Ravalomanana responded that he wasn’t sure one was enough; if Romer could identify two rich countries willing to play the role of government trustee, it might be better to launch two parallel experiments. The president and the professor agreed that the new hubs should be open to migrants from nearby countries as well as to locals. They rose to examine a map of Madagascar on the study wall. Ravalomanana suggested building the first city on the island’s southwestern coast, which was largely uninhabited because of its dry heat. To Romer, the site sounded very much like the coastal locations that appeal most to the world’s affluent as vacation spots.

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