The Impact of ZEDs: Honduras' Loss of Sovereignty

💼Special Economic Zones (ZEDs) in Honduras grant large corporations absolute autonomy, including their own courts and security services.

🚫The ZEDs have led to a loss of sovereignty for the Honduran state, as it has no say or control over the territories designated for the zones.

💰Investors, largely Silicon Valley libertarians, see ZEDs as a way to create utopian cities free from state regulations and taxes.

🌍The ZEDs in Honduras are considered one of the most extreme expressions of privatization of space, resembling colonial or neo-colonial practices.

🌴The largest ZED in Honduras is being constructed on Ratan Island, a popular tourist destination, displacing local inhabitants and impacting access to resources.

What are Special Economic Zones (ZEDs)?

—ZEDs are areas where corporations are granted absolute autonomy, including their own courts and security services. Some investors see ZEDs as a way to create utopian cities free from state regulations and taxes.

How do ZEDs impact sovereignty in Honduras?

—The creation of ZEDs in Honduras has resulted in a loss of sovereignty for the Honduran state. The zones essentially have their own governments, and the state has no say or control over the territories designated for the zones.

Who are the investors behind the ZEDs in Honduras?

—The investors behind the ZEDs in Honduras are largely Silicon Valley libertarians. They believe that these zones can create economic wealth and showcase the idea that the state is the problem.

How are local inhabitants affected by the ZEDs?

—Local inhabitants in areas designated for ZEDs often face displacement and limited access to resources. Social services may also be privatized, further impacting their quality of life.

Can the Honduran government dismantle the ZEDs?

—Despite popular opposition and the government's intention to dismantle the ZEDs, international arbitration mechanisms prevent them from doing so. These mechanisms allow investors to challenge state decisions and protect their interests.

01:40Special Economic Zones (ZEDs) grant corporations autonomy and resemble colonial or neo-colonial practices.

05:53ZEDs in Honduras involve the privatization of land, displacement of local inhabitants, and limited access to resources and social services.

10:59The current president of Honduras campaigned against ZEDs and succeeded in repealing the law that allowed them.