📔 The Hidden Secession
How 5,400 Economic Zones Are Reshaping the World Under Our Noses
With every article and podcast episode, we provide comprehensive study materials: References, Executive Summary, Briefing Document, Quiz, Essay Questions, Glossary, Timeline, Cast, FAQ, Table of Contents, Index, Polls, 3k Image, and Fact Check.
The most significant shifts in history never trumpet their arrival. They happen quietly, gradually reshaping our reality while we're distracted by louder narratives. We're living through such a transformation right now, and most people haven't even noticed.
Over 5,400 special economic zones now exist worldwide. Let that sink in. These aren't just abstract economic concepts – they're physical territories carved out within existing nations, operating under different rules, different tax codes, different labor regulations, different everything. A thousand of these zones emerged in just the last decade alone. The scale is staggering, and the implications for democracy, sovereignty, and the future of the nation-state are profound.
The Dual Face of Globalization
We've been told a simple story about globalization: it's about interconnection, the breaking down of barriers, the free flow of goods and ideas across a seamlessly connected world. But that's only half the truth.
While we were focused on integration, a parallel process of deliberate fragmentation has been unfolding. Countries haven't simply opened their borders – they've created strategic exceptions within them. Special economic zones, free ports, tax havens, export processing zones – these aren't bugs in the system of globalization. They're features.
This phenomenon represents what might be the most significant political-economic experiment of our time: the creation of customized legal and regulatory environments designed specifically to attract mobile capital. It's capitalism à la carte, where investors can shop for the most favorable conditions while bypassing the messy compromises of democratic governance.
From Hong Kong to Everywhere
The template began with Hong Kong – a colonial creation that became an economic powerhouse in the 1970s. When Milton Friedman and his free-market disciples from the Mont Pelerin Society visited in 1978, they saw what appeared to be their libertarian ideals manifested: minimal regulation, low taxes, explosive growth.
What they conveniently overlooked were the significant state interventions that actually underpinned Hong Kong's success – massive public housing programs and even rent controls that contradicted pure free-market principles. The image of Hong Kong that spread globally was a simplified, idealized version, scrubbed clean of inconvenient complexities.
That portable Hong Kong model has since been reimagined and redeployed worldwide. China adopted it first with "experimental gradualism," creating Shenzhen and other special economic zones. Thatcher's Britain imported it to transform London's Docklands into Canary Wharf, while Singapore refined it into a hybrid of authoritarian governance and economic dynamism.
Beyond Economics: The Political Project
What's happening goes beyond mere economic policy. For certain market radicals, these zones represent something far more ambitious: an escape from democracy itself.
The fascinating paradox is that these supposed champions of freedom often express admiration for the most controlled environments. Singapore's "thin" commitment to Western-style democracy and its restrictions on protest and press freedom are reframed as "pragmatism" through the lens of "Asian values." Dubai's authoritarian model – no income tax, no trade unions, no political opposition – became a magnet for those who see democratic oversight as inefficient friction rather than essential accountability.
This isn't just about moving money around. It's about creating spaces where capital operates unfettered by democratic demands. It's about finding what one source calls "the ideal container for capitalism" – environments where the messiness of politics, the inconvenience of environmental protections, and the cost of labor rights can all be minimized or eliminated.
From Soft Secession to Digital Nations
The spectrum of these experiments is breathtaking. At one end are what might be called "soft secession" models – gated communities and private developments operating as "contractual governments" where rights and responsibilities are tied to property ownership. At the other extreme are wildly ambitious projects to create entirely new political entities – "franchise nations," "cloud countries," and digital-first governance systems.
Some libertarian thinkers have even looked back to pre-modern political arrangements, romanticizing the feudal period as a time of decentralized power and private governance before the rise of modern nation-states. It's a selective reading of history, of course, but one that inspires contemporary experiments.
The tiny principality of Liechtenstein draws admirers for its blend of hereditary monarchy and capital mobility, particularly for its constitution that allows municipalities the right to secede. When its prince Hans-Adam II suggested he'd consider selling the country to Bill Gates "if the price was right," he perfectly captured the transactional view of sovereignty that undergirds much of this thinking.
The Ultimate Contradiction
The fascinating contradiction at the heart of this movement is that these "escape hatches" from the nation-state ultimately depend on state power for their existence. These zones are created by governments, protected by governments, and survive at the pleasure of governments. They're not genuine alternatives to state power but specialized applications of it.
Moreover, there's never truly a blank slate. These experiments always occur on land where people already live, within existing societies with their own histories and claims. The powerful pro-democracy protests in Hong Kong completely exploded the myth of the quiet, passive, purely economic city-state. People want political self-determination, not just a favorable business environment.
Why This Matters for Everyone
You might wonder why this matters if you don't work in international finance or operate a multinational corporation. The answer is that these zones represent a fundamental shift in how power operates in our world.
The proliferation of these spaces challenges our basic concepts of citizenship, sovereignty, and democratic accountability. When significant portions of economic activity occur in specially designated zones with different rules, it erodes the social contract that binds citizens and states. It creates separate legal and economic realities for different people based on wealth, connections, and mobility.
For corporations and the ultra-wealthy, these zones offer unprecedented freedom from taxation and regulation. For everyone else? We're left with the bill and diminished leverage to demand better governance. When capital can simply opt out of social responsibility by relocating to a friendlier zone, the bargaining power of ordinary citizens is severely weakened.
The Coming Reckoning
This fragmentation of sovereign space isn't sustainable in the long run. The tensions it creates – between the mobile and the rooted, between economic efficiency and democratic legitimacy, between freedom for capital and freedom for people – will continue to intensify.
We're already seeing pushback, from Hong Kong's protesters to growing international efforts to combat tax havens. The backlash against globalization we've witnessed in recent years isn't just about trade or immigration – it's also about these invisible architectures of privilege that have been constructed while most of us weren't looking.
The conversation about economic zones needs to move from technical policy discussions into the mainstream of democratic debate. These aren't just abstract economic arrangements – they're profound restructurings of power with far-reaching implications for all of us.
Understanding this hidden geography of exception is essential for anyone who cares about the future of democracy in an age of hyper-mobile capital. The next time you hear politicians championing a new "opportunity zone" or "innovation district," ask yourself: opportunity for whom, and at what cost to democratic governance?
The battle over these questions may well define the political economy of the 21st century. Five thousand four hundred zones and counting – this isn't just a footnote to globalization. It's potentially its most consequential chapter.
Link References
Crack-Up Capitalism: Market Radicals and the Dream of a World Without Democracy
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STUDY MATERIALS
Briefing Document
I. Executive Summary
Quinn Slobodian's "Crack Up Capitalism" explores the increasing proliferation and significance of "zones" – unusual legal spaces and peculiar jurisdictions – within and across national borders. Challenging the traditional view of the world as a simple "jigsaw of nations," the author argues that these zones, ranging from small duty-free districts to urban megaprojects and tax havens, represent a fundamental shift in the organization of global capitalism and political power. Driven by market radicalism, libertarian ideologies, and the desire to escape state taxation and regulation, these zones are presented as experiments in alternative governance models, often resembling historical forms of extraterritoriality, feudalism, or even "startup nations." While proponents envision a world of decentralized, competitive polities where citizens are "customers," the excerpts also highlight the historical roots of these zones in colonialism and exploitation, and argue that they ultimately serve to strengthen the position of powerful state capitalist entities rather than promoting true liberation from the state.
II. Main Themes and Key Ideas
A. The World as a Patchwork of Zones, Not Just Nations:
The traditional understanding of the world as composed solely of distinct nation-states is insufficient.
The modern world is "pockmarked, perforated, tattered and jagged, ripped up and pinpricked" by unusual legal spaces and peculiar jurisdictions within nations.
These zones include "city-states, havens, enclaves, free ports, high-tech parks, duty-free districts, and innovation hubs."
There are over 5,400 zones globally, with a thousand new ones emerging in the last decade alone.
Quote: "But we make a mistake if we see the world only in this jigsaw of nations. In fact, as scholars remind us, the modern world is pockmarked, perforated, tattered and jagged, ripped up and pinpricked. Inside the containers of nations are unusual legal spaces, anomalous territories, and peculiar jurisdictions. There are city-states, havens, enclaves, free ports, high-tech parks, duty-free districts, and innovation hubs. The world of nations is riddled with zones—and they define the politics of the present in ways we are only starting to understand.4"
B. Zones as Sites of Legal and Political Experimentation and Escape:
Zones represent attempts to escape the taxing and regulating power of the state.
Libertarian ideologies, particularly those advocating for "soft secession" and "start-up nations," view zones as opportunities for political experimentation and a "Cambrian Explosion in government."
Examples include "seasteads" (settlements on the high seas) and proposals for corporations to write their own laws in "innovation zones."
Secession can also occur on a smaller scale through individual acts like using cryptocurrency, relocating to lower-tax states, or joining gated communities.
Quote: "One market radical calls this soft secession.21 We can secede by removing children from state-run schools, converting currency into gold or cryptocurrency, relocating to states with lower taxes, obtaining a second passport, or expatriating to a tax haven.22 We can secede, and many have, by joining gated communities to create private governments in miniature."
Quote: "His proposal: repurpose offshore oil rig technology and set up settlements beyond the jurisdiction of terrestrial states, homesteading the high seas.3 Beyond the “exclusive economic zone” that stretches two hundred miles out from every country’s shore, the open ocean was free for private exploitation and political experimentation. “Seasteads” would escape the taxing and regulating state, declare independence, and spark what he dubbed a “Cambrian Explosion in government.”4 In the jargon of Silicon Valley, these would be start-up nations."
C. Historical Roots of Zones: Colonialism, Extraterritoriality, and Feudalism:
The concept of legal islands and separate jurisdictions within a larger territory has historical precedents, such as medieval European cities with their own laws and the City of London's unique status.
Colonial history, particularly the establishment of free ports and concessions like Hong Kong, demonstrates the use of zones for economic exploitation and extraterritoriality (foreigners governed by their own laws).
The economic development of places like Singapore and Dubai is rooted in their history as strategically important ports under colonial influence, often facilitating illicit trade like opium and smuggling.
Modern zones, like those in Dubai, draw on the historical precedent of creating distinct legal spaces within a host country.
Quote: "Hong Kong’s origins tell a story about how Friedman’s ideal state was created—at the barrel of a gun."
Quote: "Ceded to foreign powers on leases ranging from a quarter century to perpetuity, the coastal concessions were both of China and outside of it— states of exception, or zones. The foreigners inhabiting the zones were extraterritorial."
Quote: "Though the march of the nation-state was well advanced by the twentieth century, one medieval enclave that survives to the present sits at the heart of modern London. The “Square Mile” of the financial district on the north bank of the Thames—known as the City—is not altogether part of its host country."
D. The Role of Market Radicalism and Libertarianism:
Market radicals and libertarians actively promote the creation of zones and alternative governance models.
Figures like Peter Thiel, who envisions a world of a thousand nations, and those involved in the Seasteading Institute see political sovereignty as a potential for-profit enterprise.
The idea of "citizen-customers" and the state as a "service provider" is a core concept within this movement, viewing government as a market to be disrupted.
The historical example of medieval Iceland, with its privately enforced law and transferable retribution, is cited as an attractive model for some libertarians.
The paleo-libertarian movement, with its emphasis on individual property rights and critiques of collective ownership, is linked to the desire for secession and land grabs.
Quote: "When Peter Thiel spoke of a world of a thousand nations, it was not speculation—it was a business plan. He was presenting at an event for an institute he funded that had the goal of drastically increasing the number of the world’s territories."
Quote: "Patri Friedman pointed out that government services accounted for 30 percent of global GDP. “People talk about disrupting medicine or energy or education,” Friedman said. “Those are small potatoes. This is the big one.” Government was the biggest cartel in the world. “Let’s think of countries as firms and citizens as customers,” he proposed."
Quote: "From the tenth to the thirteenth centuries, he wrote, the Nordic island “might almost have been invented by a mad economist to test the lengths to which market systems could supplant government in its most fundamental functions.”24 In medieval Iceland, he wrote, law was privately enforced; even murder was a civil offense for which one paid a fine to the victim’s family.25"
E. Liechtenstein as a Libertarian Model:
The microstate of Liechtenstein is seen by market radicals as a template for twenty-first-century political organization, a "supply-siders’ Lilliputian lab."
Its origins (bought for cash), its history as a tax haven shielding family fortunes, and its anonymity features make it appealing to those seeking to escape state oversight.
Prince Hans-Adam II von und zu Liechtenstein is presented as a key figure promoting a vision of the "state in the third millennium" based on secrecy, autocracy, and the right of secession.
The inclusion of a secession clause for communes in the Liechtenstein constitution is seen as a practical application of this ideology.
Quote: "Radical libertarians celebrate it as the “first draft” of a state designed as a service provider with citizens as customers, and dream about “a world of a thousand Liechtensteins.”4"
Quote: "The charm of Liechtenstein begins with its origins: it was bought for cash.6"
Quote: "Another one of the prince’s goals was reversing the embarrassment of rejection from the League of Nations and earning a seat in the UN, which succeeded in September 1990. In his first address from the floor of the General Assembly, Hans-Adam did not follow tradition by delivering bromides about international cooperation. Instead, he made an astonishing argument: that all nations were ephemeral and should remain open to the possibility of their imminent dissolution."
F. Dubai as a Case Study in Franchise Nations and Legal Bubble-Domes:
Dubai represents a highly developed form of "franchise nation" or "legal bubble-dome."
Its development was driven by embracing globalization, attracting foreign investment through tax breaks and specialized zones (e.g., Silicon Oasis, Healthcare City).
Dubai actively replicates its model overseas through entities like DP World, which manages ports and develops special economic zones globally.
The city's real estate market serves as a haven for globally mobile cash, including funds from "magnates and kleptocrats."
The ambition to create distinct legal spaces is evident in the Dubai International Financial Centre (DIFC), which aimed to "write our own laws to fill up that vacuum," comparing itself to the Vatican.
Quote: "This happened through a tangle of new state-owned subsidiaries. One of these so-called parastatal organizations was DP World (Dubai Ports World), which united transportation, real estate, logistics, and light industry under one roof—an agency governing a city within a city, charged with the task of cloning itself overseas and bringing the “legal-regulatory bubble-dome” with it.59"
Quote: "The Dubai International Financial Centre (DIFC), opened in 2004. It was overseen by the Australian finance regulator Errol Hoopmann, who said his goal was to cordon off 110 acres of land, empty it of existing laws, and then “write our own laws to fill up that vacuum.” He compared the DIFC to the Vatican. It was “a state within a state,” he said.47"
G. The Concept of "Countrypreneurship" and "Start-up Cities":
The idea of "countrypreneurship" involves treating the creation of new societies and governments as a venture capital opportunity.
Paul Romer's proposal for "charter cities" in Honduras, envisioned as instant cities under new rules, exemplifies this approach.
Libertarians were particularly enthusiastic about Romer's plan, seeing it as a chance to create "anarcho-capitalist paradise[s]" and a market for governance services.
The ZEDEs (zones of employment and economic development) in Honduras are presented as legal successors to charter cities, offering a blank slate for building new institutions from scratch, freed from most Honduran laws and taxes.
Quote: "A series of other investors were attracted to the Honduras project by the prospect of a free market in statecraft."
Quote: "Yet another investor, Erick Brimen, referred to his métier as “countrypreneurship,” and started a venture capital fund offering seed capital for creating new societies “from scratch.”49 Working with Patri Friedman, Brimen broke ground in May 2021 on a fifty-eight-acre zone on the island of Roatán, off the north coast of Honduras, with $17.5 million in capital.50 Called Próspera, the zone was not a RED but its legal successor, a ZEDE..."
H. Cryptocurrency and Blockchain as Tools for Exit:
Cryptocurrency, particularly Bitcoin, is seen by some as a means of "opting out on every layer" and achieving monetary freedom from central banks.
The potential for algorithmically governed "smart contracts" using blockchain technology is viewed as a way to substitute technology for trust and bypass traditional legal systems.
The success of Bitcoin is cited as an example of "LARPing" (Live Action Role-Playing) a currency into existence, suggesting the possibility of "LARPing" a nation.
Quote: "Bitcoin offered the prospect of money beyond central banks. Bringing The Sovereign Individual’s “cybercash” into reality would remove the human factor from money. It also offered the tantalizing possibility of substituting technology for trust, enabling algorithmically governed “smart contracts” without judges or courts. In that sense, putting money and laws “on the blockchain” was the ultimate form of exit."
Quote: "Bitcoin proponents had “LARPed” a currency into existence, he said... And if you could LARP money, one of the central filaments of social fabric, then why couldn’t you LARP a nation?47"
I. The Reality of Zones: State Power and Exploitation:
Contrary to the rhetoric of liberation, zones are often created and used by states to advance their own purposes.
The creation of zones can involve "government-enabled confiscation," disregarding libertarian principles of property rights.
NEOM in Saudi Arabia, planned as an autonomous government run by shareholders, demonstrates how powerful state entities are leveraging the zone model.
Zones, while proliferating, are argued to be strengthening "a handful of state capitalist superpowers" rather than creating truly independent, competitive polities.
Quote: "Zones are everywhere, but contrary to the rhetoric of boosters, they do not seem to be creating islands of liberation from the state. Rather, states are using them as tools to advance their own purposes."
Quote: "As one consultant conceded, zones have proceeded through government-enabled confiscation, running roughshod over basic libertarian principles of property rights.51"
III. Important Facts and Examples
Number of Zones: Over 5,400 globally, with 1,000 new ones in the last decade.
Examples of Urban Megaprojects/Zones: New Songdo City (South Korea), Neom (Saudi Arabia), Fujisawa (Japan), Próspera (Honduras), Bitcoin City (El Salvador - planned).
Examples of Historical Precedents: City of London, medieval European cities, coastal concessions in China, Singapore under British rule, Trucial States.
Key Figures: Peter Thiel (envisioning a thousand nations), Prince Hans-Adam II of Liechtenstein (advocate for state as service provider and secession), Paul Romer (charter cities), Erick Brimen ("countrypreneurship"), Michael van Notten (kritarchy and xeer in Somalia).
Historical Events: First Opium War (leading to Hong Kong), opening of the Suez Canal (benefiting Singapore), dissolution of the Holy Roman Empire, end of the Cold War (leading to new nations), decolonization.
Specific Zones/Entities: Hong Kong, City of London, Singapore, Liechtenstein, Dubai International Financial Centre (DIFC), Jebel Ali Free Zone (Jafza), DP World, Próspera (Honduras ZEDE), NEOM (Saudi Arabia), Fort Ross (California).
Libertarian Concepts: Soft secession, seasteads, start-up nations, citizen-customers, state as service provider, kritarchy, xeer, countrypreneurship, charter cities, ZEDEs, opting out (with cryptocurrency), LARPing a nation.
Illegal/Informal Economies within Zones: Opium trade in Hong Kong and Singapore, gold smuggling in Dubai, connection of Liechtenstein banks to kleptocrats and drug lords.
Contrasting Examples: Pseudo-independent Bantustans in South Africa vs. actual self-governing Lesotho.
Technological Influences: Offshore oil rig technology (for seasteads), satellite communication (for Singapore's global connection), blockchain technology (for cryptocurrency and smart contracts).
Real Estate Trends: Gated communities as miniature private governments, creation of artificial islands (e.g., Palm Jumeirah in Dubai) to create more rentable space, real estate as a bolt-hole for globally mobile cash.
Vision of the Future: A world of competitive jurisdictions, a thousand Liechtensteins, a global marketplace for governance, potential disintegration of nation-states.
IV. Conclusion
The excerpts from "Crack Up Capitalism" present a compelling argument that the rise of zones is a defining feature of contemporary capitalism, driven by a potent mix of market ideology, historical precedents, and technological advancements. While the rhetoric surrounding these zones often emphasizes freedom, competition, and escape from state power, the analysis suggests that their origins and current manifestations are deeply intertwined with historical patterns of exploitation, colonialism, and the reinforcement of existing power structures, particularly those of state capitalist entities. The proliferation of zones is not simply about creating new countries but about fragmenting legal and political authority in ways that benefit those with capital and influence, potentially leading to a future world where governance itself is a commodity.
Quiz & Answer Key
What are "zones" as described in the text, and how do they differ from traditional nation-states?
Explain the concept of "soft secession" and provide at least two examples mentioned in the text.
How did Hong Kong's origins relate to the opium trade and its status as a "state of exception"?
What was the "Singapore Solution" and how did it propose a new model for small states in the global economy?
Describe the historical origins and purpose of the City of London's unique legal status.
What is the concept of a "start-up nation" or "seastead," and what is its proposed goal?
Explain the historical context of the Bantustans in apartheid South Africa and how they relate to the idea of decentralized territories.
How does the example of medieval Iceland, as described by Benson, represent an alternative model of law and order?
What is the significance of Liechtenstein in the libertarian vision, and how did Prince Hans-Adam II promote this vision?
What are ZEDEs in Honduras, and what powers or freedoms do they offer to investors and residents?
Answer Key
Zones are unusual legal spaces, anomalous territories, and peculiar jurisdictions within nations. They differ from traditional nation-states by operating under different legal systems or rules, often offering special economic incentives or regulatory environments that are distinct from the rest of the country.
Soft secession is the process of individuals or groups gradually withdrawing from state control through small acts of refusal. Examples include homeschooling children to avoid state-run education, converting currency to gold or cryptocurrency to avoid state monetary policy, or living in gated communities with private governance.
Hong Kong's origins as a British possession were a direct result of the First Opium War, ceded by China as spoils of war. Its status as an entrepôt free of customs duties, driven by the through traffic of opium, made it a state of exception operating under British law outside the full sovereignty of China.
The Singapore Solution was a strategy for small states to thrive in the global economy by embracing global opportunity and dependence. It involved using government power to attract multinational corporations, leverage technology to connect to world markets, and specialize in high-value industries like electronics, reducing the need for a large domestic base.
The City of London's unique legal status dates back to the Middle Ages when it maintained its own property, militia, and governing body despite Norman invasion. To this day, it retains distinct privileges and forms of governance, including businesses having voting rights, making it a kind of historical zone or "state within a state."
A start-up nation or seastead is a concept, often promoted by libertarians, for creating new political entities on unclaimed space, such as offshore platforms, beyond the jurisdiction of existing states. The goal is to escape taxation and regulation and create new forms of governance, sparking a "Cambrian Explosion in government."
Bantustans were territories created during apartheid in South Africa as a form of decentralization intended to deny democracy to Black Africans. They are related to the idea of zones as fragmented, noncontiguous territories with distinct legal statuses, used by the state to control populations and maintain minority rule rather than offering genuine autonomy.
Bruce Benson's description of medieval Iceland suggests a model of law and order where legal disputes, even murder, were treated as civil offenses with private enforcement and financial retribution (wergeld) administered by self-organized bodies ("hundreds"), rather than a top-down system of state-controlled criminal law and imprisonment.
Liechtenstein is significant in the libertarian vision as a small, historical example of a state perceived as a "service provider" with citizens as customers. Prince Hans-Adam II actively promoted this view, advocating for the right of secession, a marketplace model of citizenship, and the idea of states having "life cycles" that should allow for peaceful dissolution.
ZEDEs (Zonas de Empleo y Desarrollo Económico) in Honduras are legal successors to REDs that offer investors and residents significant freedoms. While remaining under Honduran international and criminal law, they can establish their own courts, security forces, education systems, and legal systems, operating as a kind of private venture based on contracts.
Essay Questions
Analyze the historical examples of zones (e.g., Hong Kong, Singapore, Dubai, Liechtenstein) discussed in the text. How do these examples illustrate the evolution and diversification of extraterritorial legal spaces, and what common characteristics or underlying principles do they share?
Discuss the relationship between libertarian ideology and the concept of zones. How do market radicals and proponents of "crack-up capitalism" see zones as fulfilling their political and economic goals, and what critiques does the text offer regarding this perspective?
Examine the tension between state sovereignty and the proliferation of zones. How do zones challenge or undermine traditional notions of national control, and to what extent does the text suggest that states are using zones to advance their own interests rather than being weakened by them?
Compare and contrast the different types of zones described in the text (e.g., special economic zones, free ports, gated communities, charter cities, digital zones). What are the distinct features and purposes of each, and how do they collectively contribute to the "pockmarked" landscape of global capitalism?
Evaluate the implications of the rise of zones for concepts like citizenship, governance, and the rule of law. How do zones create different relationships between individuals, corporations, and political authority, and what are the potential social and political consequences of this shift?
Glossary of Key Terms
Zones: Unusual legal spaces, anomalous territories, and peculiar jurisdictions located inside the containers of nations. They include city-states, havens, enclaves, free ports, high-tech parks, duty-free districts, and innovation hubs, often operating under different laws or rules than the surrounding territory.
Soft Secession: The accretion of many small acts of refusal by individuals or groups to fully participate in or be governed by the state, such as removing children from state-run schools, converting currency, relocating for tax purposes, or joining gated communities.
Extraterritorial: Subject to the laws and jurisdiction of a foreign power or entity, even while on the territory of another state. Historically applied to foreigners in coastal concessions and zones.
City-State: A city that, with its surrounding territory, forms an independent state. The text highlights historical examples like medieval European cities and modern examples like Singapore and the City of London.
Free Port: A port where goods can be unloaded, stored, assembled, or refined without the imposition of customs duties or tariffs. Hong Kong and Singapore are historical examples.
Start-up Nation / Seastead: A concept, often linked to libertarian ideas, proposing the creation of new political entities on unclaimed space, such as offshore platforms on the high seas, to escape the jurisdiction of existing terrestrial states and experiment with new forms of governance.
Cambrian Explosion in Government: A term used by proponents of start-up nations to describe the potential rapid proliferation and diversification of new forms of governance that could emerge from political experimentation outside traditional states.
Singapore Solution: A development strategy adopted by Singapore focusing on using government power to attract multinational corporations, plug into the world market through technology and connectivity, and become a global hub for trade and finance, reducing dependence on a domestic hinterland or working class.
Export Processing Zones: Designated areas within a country where manufacturing is carried out for export, often offering incentives like tax breaks and reduced regulations to attract foreign investment. Puerto Rico was a pioneer in this model.
Bantustans: So-called "homelands" created by the apartheid regime in South Africa based on the notion that certain African populations belonged in specific territories. Anti-apartheid activists viewed them as fragmented and illegitimate pseudo-states.
Phyles: Voluntary gatherings of like-minded residents, used in the text to describe micronations or other start-up territories where individuals self-select based on shared values or goals.
Paleo-libertarianism: A strain of libertarian thought emphasizing traditional values, cultural conservatism, and sometimes racial solidarity, linking ideas of free markets and limited government to historical narratives of white settlement and property ownership.
Anarcho-capitalism: A political philosophy that advocates for the abolition of the state and the provision of all services, including law enforcement, courts, and defense, by private, competing businesses.
Hundred (historical): In medieval Europe, a self-organized body responsible for cooperative protection and law enforcement, praised by some libertarians as an alternative to state-controlled justice.
Kritarchy: The rule of judges; an anarchist society without a central state but governed by a codified set of laws administered by judges. Michael van Notten proposed this model for Somalia based on traditional Somali law (xeer).
Xeer: Traditional Somali law, described as a form of kritarchy in the text, based on customary rules and administered by elders or judges rather than a central state.
Non-territorial Nation: A nation or political entity that exists without control over a defined geographical territory, such as the proposed state of "Freedonia."
Trucial States / Trucial Coast: A term describing the sheikhdoms on the southern coast of the Persian Gulf that were under a legal relationship with the British falling short of direct administration due to truces.
Dubai International Financial Centre (DIFC): A specially designated zone within Dubai with its own legal and regulatory framework, intended to function as a state within a state for financial businesses.
Gated Communities: Residential areas with restricted access, often privately managed, creating miniature private governments and forms of "soft secession" from the surrounding public sphere.
Franchise Zones: Replications of successful special economic zones or other zones created and managed overseas by entities from the original zone, such as Dubai replicating its Jebel Ali Free Zone.
Parastatal Organizations: Entities that are state-owned or controlled but operate somewhat independently from the direct government structure, such as DP World in Dubai.
DP World: Dubai Ports World, a parastatal organization uniting transportation, real estate, logistics, and light industry, tasked with cloning Dubai's zone model overseas.
Jafza International: Jebel Ali Free Zone Authority International, a subsidiary of DP World created to advise foreign governments on setting up their own special economic zones, globalizing the patchwork model.
Charter Cities: A concept proposing the creation of new cities or zones in developing countries, governed by a set of rules agreed upon by a host government and a chartering entity (potentially a foreign government or corporation), intended to attract investment and foster development. Paul Romer was a proponent.
Countrypreneurship: A term describing the entrepreneurial venture of creating new societies or political entities "from scratch," often linked to the idea of start-up societies or zones.
ZEDE (Zona de Empleo y Desarrollo Económico): Zone of employment and economic development in Honduras, a legal successor to REDs (Regiones Especiales de Desarrollo), offering a blank slate for building internal institutions with freedoms from many Honduran laws while remaining under international and criminal law.
Bitcoin / Blockchain: A decentralized digital currency and its underlying public ledger technology. Bitcoin is seen by some as a form of "cybercash" offering money beyond central banks, and the blockchain as a way to substitute technology for trust and enable algorithmically governed "smart contracts," representing an ultimate form of exit from state control over finance and law.
LARP (Live Action Role-Playing): Used in the text to describe how Bitcoin proponents treated a line of code as if it were money, and through this collective belief and action, it became a widely recognized form of currency. Applied to the idea of "LARPing" a nation into existence.
Capitulations (historical): Agreements granted by the Ottoman sultan to citizens of some Western nations, giving them immunity from local law and the right to be tried in their own courts; cited as a historical precedent for extraterritoriality.
NEOM: A large-scale extraterritorial zone and megaproject in Saudi Arabia intended to be an autonomous government run by shareholders rather than the Saudi state, marketed as a "first capitalist city."
The Network State: A concept, proposed by Balaji Srinivasan, suggesting a future where online communities can evolve into political entities, starting their own currencies and eventually their own countries.
Timeline of Main Events
Middle Ages (approx. 5th to 15th centuries): Medieval European cities act as legal islands with different codes inside their walls. Serfs can gain freedom by living within city limits. Europe is pockmarked by numerous different legal zones, with the Holy Roman Empire alone having over a thousand independent entities in the 18th and 19th centuries. Economic payback, rather than imprisonment, is an ideal mode of punishment, often dispensed by self-organized "hundreds." Law and order begin to become more centralized, with the king appointing sheriffs and taking a portion of fines. Permission to operate jails becomes lucrative.
16th Century Onward: Ottoman sultans grant citizens of some Western nations immunity from local law and the right to be tried in their own courts through "capitulations."
Early 1700s: A member of the Viennese court purchases two stretches of land from the bankrupt Hohenems dynasty and melds them into a single principality, rechristened with the surname Liechtenstein. The principality's original buyer and his heirs rule from afar for centuries.
1819: British East India Company officer Stamford Raffles arrives in Singapore and signs a treaty with the Malay sultan to use the harbor for trade. Raffles makes Singapore a free port with no duties.
1840s: Russians arrive on the California coast in pursuit of sea otter fur and build Fort Ross.
1842: The British claim Hong Kong Island in perpetuity as the spoils of the First Opium War with the Treaty of Nanking. Hong Kong is turned into an entrepôt free of customs duties, with its economy driven by the opium trade.
1846: The breakaway Bear Republic of California claims sovereignty over a region for a month before giving way to the United States.
1859: The opening of the Suez Canal increases traffic to Singapore, which becomes a coaling station for the Royal Navy.
1898: The agricultural hinterland of the New Territories is leased to Britain for ninety-nine years, expanding the colonial footprint of Hong Kong tenfold.
Before 1900: Opium accounts for between one-third and one-half of Singapore's revenue.
Turn of the 20th Century: A mill built at Fort Ross to turn felled trees into timber burns down.
1920: A multinational consortium creates a new bank in Liechtenstein. The first holding company is also created.
1926: Liechtenstein passes a law allowing foreign companies to act as if they were domiciled in the principality, with a local lawyer acting as their agent.
1930s: Japanese fascists realize their dependency on Southeast Asia's products and resent the British, American, and Dutch imperial stranglehold on the region. Saudi Arabia builds the fenced compound of American Camp near the Aramco oil refinery.
1932: The number of registered companies in Liechtenstein rises to around twelve hundred.
World War II: Japan plunges into the war partly to bring Southeast Asia's raw materials under its control. On the same day bombs dropped on Pearl Harbor, they drop on Singapore, Hong Kong, and Manila.
1942: Singapore falls to the Japanese, who designate it the capital of a new province in their Asian empire.
After World War II: Puerto Rico becomes a pioneer in export processing zones, attracting investors to simple factories with tax breaks and employing largely women sewing garments.
Since the late 1950s: New flags rise across Africa as countries gain independence from colonial powers.
1960s: Britain begins to take more notice of Dubai as London banks find profit in selling gold bars smuggled from Dubai to Mumbai to dodge Indian trade restrictions. Singapore uses the US island possession of Puerto Rico as a model at independence. Winsemius helps court electronics companies like Philips to Singapore.
1969: Texas Instruments opens a plant in Singapore. Singapore Foreign Affairs Minister S. Rajaratnam lays out the strategy of "plugging in" to multinational corporations.
Late 1970s: Portugal finally quits Africa. Rhodesia becomes Zimbabwe.
1972: Singapore Foreign Affairs Minister S. Rajaratnam lays out the "Singapore Solution."
1978: Rhodesia becomes Zimbabwe.
1980: Vanuatu gains independence.
1981: Apple opens a plant in Singapore.
1984: Women in Liechtenstein gain the right to vote. Ron Paul runs for president.
Mid-1980s: Assets under management in Liechtenstein triple.
1985: The Wall Street Journal calls Liechtenstein "the supply-siders’ Lilliputian lab."
1986: Leon Louw and Frances Kendall use Liechtenstein to argue for cantonization in apartheid South Africa.
1987: Bruce Sterling's novel Islands in the Net is published, featuring the concept of a "liberated zone" and small island states whose sovereignty can be had for a price.
1988: Milton Friedman gives a lecture in apartheid South Africa, recommending decentralization instead of democracy. Apartheid South Africa creates a series of "homelands" or Bantustans.
1990: The paleo alliance holds its first meeting in Dallas. Liechtenstein gains a seat in the UN. Prince Hans-Adam II gives his first address to the UN General Assembly, arguing that nations are ephemeral and should remain open to dissolution through referendums.
1990s: The UN grants seats to tiny nations long excluded: Andorra, San Marino, Monaco, and Liechtenstein. The desire for ownership fuels secessionist movements in the US, ranging from the would-be Free State of Jefferson to militant ranchers. About half of all new developments in the American South and West are gated and master-planned.
1999: Dubai Ports World (DP World) takes over the comanagement of the Jeddah Islamic Port on the Red Sea.
2000: Jafza International (Jebel Ali Free Zone Authority International) is created to advise foreign governments on setting up special economic zones. DP World takes over management of the Port of Djibouti. Prince Hans-Adam II sends a red booklet to Liechtenstein citizens with proposed constitutional revisions, including the right for communes to secede.
Early 2000s: The number of registered companies in Liechtenstein reaches seventy-five thousand. Dubai runs out of waterfront property and begins creating artificial islands. Dubai real estate becomes a bolt-hole for globally mobile cash.
2002: Foreign ownership of land in Dubai becomes legal anywhere in the emirate, leading to a land rush and the construction of gated communities. DP World assumes management of Djibouti–Ambouli International Airport.
2004: The Dubai International Financial Centre (DIFC) opens, intended to be a legal vacuum where new laws are written. Jafza International begins managing Port Klang in Malaysia.
2005: By the end of the year, DP World signs contracts with five African countries to oversee port development. DP World buys the US company CSX World Terminals, becoming the world's sixth-largest container terminal operator.
2006: $100 billion in projects are underway in Dubai, including numerous specialized zones.
2007: Curtis Yarvin muses on whether it would be a good idea to let Dubai’s Sheikh Al Makhtoum run Baltimore.
2008: Bitcoin, designed by Satoshi Nakamoto, is created.
2009: Stanford economics professor Paul Romer gives a talk on reviving colonialism, suggesting the creation of "charter cities."
2010s: One thousand new special economic zones appear worldwide. China begins pursuing a vision of corridors linking nodes of capitalism across borders.
2011: The Economist marvels at the prospect of "Hong Kong in Honduras."
2013: The Atlantic asks, “Should Struggling Countries Let Investors Run Their Cities?” and answers yes.
2017: Saudi Arabia announces NEOM, a $500 billion megaproject near the Jordanian and Egyptian border, intended to be an autonomous government run by shareholders. Balaji Srinivasan gives talks about starting your own currency and starting your own country.
2018: The Ludwig von Mises Institute's Jeff Deist praises breakaway movements and the idea of government as a service provider. Daniel Model, a corrugated packaging mogul, releases a "declaration of sovereignty" and declares his independent state Avalon.
2019: Nayib Bukele becomes prime minister of El Salvador.
2020: China moves forward with plans to turn the island of Hainan into a special economic zone. DP World expands the port in Berbera, Somaliland, as part of a deal with Britain.
May 2021: Erick Brimen, working with Patri Friedman, breaks ground on Próspera, a ZEDE on the island of Roatán, Honduras. Nevada lawmakers float the idea of letting corporations write their own laws in "innovation zones."
November 2021: Nayib Bukele unveils plans for a Bitcoin City in El Salvador.
2021: Bitcoin grows from a figment of imagination to a trillion-dollar part of the world financial system.
2022: The tallest pencil tower yet opens in Manhattan, with prices ranging from $8 million to $66 million. Dubai real estate gets a boost from the pandemic, attracting buyers including Afghan warlords and political elites. Hungary opens new special economic zones for Korean investment. China signs a long-term lease for a port in the Solomon Islands.
During the Pandemic: China moves forward with plans to turn the island of Hainan into a special economic zone.
Cast of Characters
Stamford Raffles: British East India Company officer who arrived in Singapore in 1819 and established it as a free port. His statue stands on the waterfront as a symbol of Singapore's official self-narration.
Fernand Braudel: Historian who called early modern European cities "autonomous worlds" ringed by real and "juridical ramparts."
Helen Mirren: Actress who played the wife of the character Shand in a film set in the London Docklands.
Shand: A character in a film about the London Docklands who sees opportunity in its decay and plans to tap overseas investors to fund construction.
S. Rajaratnam: Singapore's Foreign Affairs Minister in 1972, who laid out the "Singapore Solution" strategy for economic development by "plugging in" to multinational corporations.
Albert Winsemius: Helped court electronics companies like Philips to Singapore in its early years of development.
Milton Friedman: Economist who gave a lecture in apartheid South Africa in 1988 recommending decentralization instead of democracy. Spoke of a future world of a thousand countries.
Leon Louw: Co-author who, with Frances Kendall, used Liechtenstein as an argument for cantonization in apartheid South Africa.
Frances Kendall: Co-author who, with Leon Louw, used Liechtenstein as an argument for cantonization in apartheid South Africa.
Murray Rothbard: Paleo-libertarian thinker who gave a special status to the pioneer and settler as the ultimate libertarian actor. He called the idea of decentralized jurisdictions "nations by consent."
Hans-Hermann Hoppe: Taught in Nevada and is mentioned in relation to Rothbard in the context of paleo-libertarian thought and the desire for private ownership of land.
Ron Paul: Spoke of his conviction that change would come "with a calamity and with a bang" and described his daydream of a Republic of Texas.
Marion Zimmer Bradley: Author of The Mists of Avalon, a fantasy novel from which Daniel Model drew the name for his independent state.
Bruce Benson: Libertarian thinker who wrote positively about medieval Iceland and "hundreds" as self-organized bodies for law enforcement, viewing incarceration as an unnecessary state function.
Patri Friedman: Peter Thiel's associate who presented plans for turning political sovereignty into a for-profit enterprise by setting up settlements beyond the jurisdiction of terrestrial states ("Seasteads"). He also worked with Erick Brimen on the Próspera ZEDE in Honduras and pointed out that government services account for a large portion of global GDP, seeing it as a large market ripe for entrepreneurial disruption.
Peter Thiel: Funded an institute with the goal of drastically increasing the number of the world’s territories. Spoke of a world of a thousand nations as a business plan. Was scheduled to speak at the conference where Romer presented his charter cities idea.
David Friedman: Son of Milton Friedman. Spoke at the second conference of the Seasteading Institute, explaining its significance by returning to the trope of the Ottoman Empire and the idea of a polylegal system.
Prince Hans-Adam II von und zu Liechtenstein: The world's fourth-wealthiest monarch and a resident libertarian theorist in Liechtenstein. He has offered himself as a tribune for the cause, sketching blueprints for "the state in the third millennium." He advocated for the dissolution of states through referendums and viewed the state as a "service provider" with citizens as "shareholders." He proposed constitutional revisions that allowed communes to secede and suggested he would sell the country to Bill Gates.
Daniel Model: A corrugated packaging mogul and former curling champion who moved to Liechtenstein and released a "declaration of sovereignty," declaring his independent state Avalon.
Bruce Sterling: Author of the 1988 novel Islands in the Net, which features a white US Special Forces colonel who has defected and a character who ruminates on small island states whose sovereignty can be had for a price.
Jonathan Gresham: A fictional white US Special Forces colonel in Bruce Sterling's novel Islands in the Net who has defected and operates from a "liberated zone."
Laura: The protagonist in Bruce Sterling's novel Islands in the Net, a public relations consultant who revels in the fissures of the new world and the idea of buying sovereignty in small island states.
Michael van Notten: An NGO consultant who found a patron in an insurgent military leader in Somalia and aimed to create a utopia based on kritarchy, the rule of judges, drawing inspiration from traditional Somali law (xeer).
Prince John II: The ostensibly reigning prince of Freedonia, a pet project of a group of young Texan men.
Indira Gandhi: Prime Minister of India who cracked down on "smuggler kings" who controlled contraband trade from Dubai.
Sheikh Al Makhtoum: The Sheikh of Dubai, mentioned as someone Curtis Yarvin mused about letting run Baltimore.
Curtis Yarvin: Mentioned as musing on whether it would be a good idea to let Dubai’s Sheikh Al Makhtoum run Baltimore.
Paul Romer: A Stanford economics professor who gave a talk in 2009 on reviving colonialism and proposed the creation of "charter cities," which drew excitement from entrepreneurial libertarians.
Erick Brimen: An investor attracted to the Honduras project, who referred to his métier as "countrypreneurship" and started a venture capital fund for creating new societies "from scratch." He broke ground on the Próspera ZEDE in Honduras with Patri Friedman.
Nayib Bukele: Prime minister of El Salvador who rolled out a campaign to brand his nation as a global center for cryptocurrency and unveiled plans for a Bitcoin City.
Satoshi Nakamoto: Mysterious figure who designed Bitcoin.
Balaji Srinivasan: Gave talks about starting your own currency and starting your own country, arguing that if you could "LARP" money into existence, you could "LARP" a nation.
Mohammed bin Salman: Saudi Crown Prince who called NEOM "the first zone floated in the public markets" and "the first capitalist city in the world."
Narendra Modi: Indian prime minister whose government has been ramping up special economic zones.
Jeff Deist: From the Ludwig von Mises Institute, he praised breakaway movements and the idea of government as a service provider.
Paulo Guedes: Brazil's minister of the economy, educated at the University of Chicago, with whom proponents of start-up cities were in talks about opportunities in Brazil.
Errol Hoopmann: Australian finance regulator who oversaw the Dubai International Financial Centre (DIFC) and aimed to cordon off land, empty it of existing laws, and write new ones.
The Adrianople Group: Credited for the map of special economic zones at openzonemap.com.
FAQ
What are "zones" and how do they differ from traditional nation-states?
Zones, as described in the sources, are unusual legal spaces, anomalous territories, and peculiar jurisdictions that exist within or alongside nation-states. Unlike the traditional jigsaw of nations with defined borders and unified legal systems, zones are "pockmarked, perforated, tattered and jagged, ripped up and pinpricked." They can range in size from a single factory or warehouse to urban megaprojects. They differ from nation-states primarily in their distinct legal and regulatory environments, often designed to attract investment and facilitate specific economic activities by offering advantages like reduced tariffs, tax breaks, or even their own legal systems, security forces, and governance structures. While nation-states are typically based on concepts of shared territory, language, and history, zones are often created with economic goals in mind, sometimes acting as "start-up territories" or "service providers" for capital and businesses.
How has the concept of "secession" evolved beyond the traditional idea of breaking away to form a new state?
Secession in the context of the sources goes beyond outright political separation to encompass various forms of "soft secession." This can include actions taken by individuals or groups to remove themselves from the full jurisdiction and regulations of the state, such as withdrawing children from state schools, converting currency to gold or cryptocurrency, moving to lower-tax jurisdictions, obtaining second passports, or expatriating to tax havens. It also manifests in the creation of gated communities, which establish miniature private governments with their own rules and governance structures, effectively seceding from the surrounding public space and its regulations. Furthermore, the idea of "seasteads" – settlements on the high seas beyond national jurisdiction – represents an attempt to create polities entirely outside of existing state control, offering a radical form of secession.
What historical precedents are cited for the existence and function of these "zones"?
The sources highlight several historical precedents for the concept of zones. Medieval and early modern European cities are mentioned as having been legal islands within their surrounding territories, subject to different laws. The City of London, with its unique historical privileges and governance structure where businesses have voting rights, is presented as a surviving "primal zone." The coastal concessions granted to foreign powers in China, like Hong Kong, are also cited as historical examples of "states of exception" or zones with extraterritoriality. Furthermore, the Ottoman Empire's practice of granting citizens of Western nations immunity from local law through "capitulations" is seen as a precursor to modern extraterritorial zones. These historical examples demonstrate that the idea of territories operating under different legal or administrative rules than their surroundings is not entirely new.
How do figures like Peter Thiel and Prince Hans-Adam II of Liechtenstein embody the vision of a world composed of numerous, competing jurisdictions?
Peter Thiel's fantasy of a future world of a thousand countries and his funding of an institute aimed at drastically increasing the number of territories reflects a vision of political sovereignty as a for-profit enterprise. His support for "seasteads" as "start-up nations" beyond the reach of terrestrial states exemplifies the desire to escape existing regulations and experiment with new forms of governance. Similarly, Prince Hans-Adam II of Liechtenstein is presented as a prominent advocate for a world of numerous, small jurisdictions, seeing Liechtenstein itself as a "template for political organization for the twenty-first century." He champions the idea of the state as a "service provider" with citizens as "customers" and actively promotes the right of secession, even for small communes within his own principality. Both figures represent a market radical perspective that views a proliferation of competing polities as a desirable outcome, offering opportunities for economic experimentation and freedom from perceived state overreach.
What role do financial havens and instruments like cryptocurrency play in facilitating "crack-up capitalism"?
Financial havens like Liechtenstein, with their anonymity, low regulation, and secrecy laws, play a crucial role in facilitating "crack-up capitalism" by providing spaces for wealth management, tax avoidance, and the shielding of illicit funds. The use of shell companies and trusts allows individuals and corporations to obscure their identities and financial activities, effectively creating legal black boxes outside the purview of traditional state oversight. Cryptocurrency, particularly Bitcoin, is also presented as a tool for "opting out on every layer," offering money beyond central banks and the potential for algorithmically governed "smart contracts" without reliance on traditional legal systems. These financial mechanisms enable the mobility of capital and the ability of wealthy individuals and businesses to navigate and circumvent state regulations, contributing to the fragmentation of traditional state power.
How is the concept of "start-up cities" or "charter cities" being implemented and what are the underlying motivations?
The concept of "start-up cities" or "charter cities," as championed by figures like Paul Romer and Erick Brimen, involves creating new urban developments that operate under their own distinct sets of rules and governance structures, often within existing countries. These zones, like the ZEDEs in Honduras, are designed to attract investors and residents by offering exemptions from national laws, tax holidays, and independent legal and security systems. The underlying motivations are rooted in the idea of viewing countries as "firms" and citizens as "customers," aiming to "cash in" on perceived state failure by creating more efficient and business-friendly jurisdictions. These initiatives are seen by proponents as "field testing" for new governance models and a way to accelerate development by importing advanced technology and expertise, sometimes with explicit colonial undertones, as suggested by the idea of letting investors "run their cities."
How do historical examples like Hong Kong and Singapore illustrate the origins and evolution of the "zone" model driven by economic imperatives?
Hong Kong and Singapore serve as key historical examples illustrating how economic imperatives have driven the creation and evolution of "zones." Hong Kong's origins as a British colony claimed for trade and its status as an entrepôt free of customs duties, initially driven by the opium trade, demonstrate how territories can be established and governed primarily for economic benefit, operating outside the full sovereignty of the surrounding state. Singapore's strategy of "plugging in" to multinational corporations, embracing global opportunity at the price of global dependence, and transforming itself into a global hub for trade and high tech through the creation of free ports and specialized zones, showcases a deliberate use of the "zone" model to find a niche in the world market and leapfrog traditional development paths. Both cases highlight how these zones, often built on earlier models of extraterritoriality and free trade, have become central nodes in a global network of capitalism.
What are some of the social and political implications of the proliferation of zones and the concept of "crack-up capitalism"?
The proliferation of zones and the broader concept of "crack-up capitalism" have significant social and political implications. The creation of distinct legal spaces with different rules can lead to uneven development and exacerbate inequalities, with zones often operating with low-wage labor and attracting globally mobile capital while potentially bypassing the social safety nets and regulations of the surrounding state. The emphasis on private governance and the treatment of citizens as "customers" can undermine traditional democratic structures and notions of shared citizenship and public goods. Furthermore, the historical connections of some zones and the underlying ideologies of some proponents to colonial practices and the disregard for indigenous land rights raise concerns about the potential for exploitation and the erosion of national sovereignty, particularly in developing countries. While proponents envision zones as sites of liberation and innovation, the sources suggest that they can also serve to strengthen existing power structures and state capitalist interests, rather than creating a world of truly independent and competing polities.
Table of Contents with Timestamps
Contents: Crack-Up Capitalism: Zones and Secession
00:00 - Introduction - The hosts introduce Heliox podcast's mission and approach to deep conversations
00:25 - The Scale of Economic Zones - Discussion of the staggering number of special economic zones globally (5,400+) and their rapid growth
01:11 - Globalization's Dual Nature - Exploration of how globalization involves both integration and fragmentation happening simultaneously
04:46 - The 1990s as Pivotal Period - Analysis of how the post-Cold War era fostered both global connectivity and political fragmentation
05:49 - Micro-Secessionism and Ideal Containers - Discussion of market radicals seeking alternative spaces to traditional nation states
06:43 - Hong Kong as Original Template - Examination of Hong Kong's role as the blueprint for economic zones and free market ideology
07:50 - Hong Kong's Reality vs. Perception - Discussion of how Hong Kong's actual governance included significant state intervention, contradicting libertarian myths
08:41 - China's Experimental Gradualism - Analysis of China's pragmatic approach to Hong Kong and the creation of SEZs like Shenzhen
09:44 - London's Canary Wharf - How the Thatcher government exported the Hong Kong model to transform London's Docklands
10:56 - Public vs. Private Space - Discussion of the privatization of public land and the creation of "privately owned public spaces"
12:42 - Singapore as Model - Examination of Singapore's hybrid approach combining authoritarianism with economic dynamism
14:40 - Asian Values as Justification - How the concept of "Asian values" was used to justify limited democracy while promoting economic growth
15:22 - Ideological Experiments - Discussion of more extreme zone experiments including failed libertarian attempts in apartheid South Africa
16:18 - Crack-Up Capitalism - Analysis of paleo-libertarian ideology advocating secession and fragmentation of nation states
17:27 - Soft Secession Examples - Examination of gated communities as experiments in "contractual government"
18:04 - Medieval Inspiration - How some libertarians looked to pre-nation state periods as models for decentralized governance
19:02 - Liechtenstein as Model - Discussion of this tiny European country as a libertarian ideal of governance
20:06 - Science Fiction Becomes Reality - Analysis of increasingly detached concepts like franchise nations and "cloud countries"
20:39 - Dubai as Power Center - Examination of Dubai's zone-based governance and its global export
21:57 - Digital-First Governance - Discussion of Balaji Srinivasan's concept of "online first, land last" political entities
22:26 - Startup Cities and Challenges - Review of attempts to create libertarian zones and their political challenges
22:57 - Global Zone Networks - How these diverse zones connect through international trade law and continue spreading
23:44 - The Zone as Lifeboat - Final metaphor and the contradiction of zones ultimately being tools of state power, not escapes from it
24:40 - Hong Kong Revisited - How Hong Kong's pro-democracy protests challenge the purely economic vision of city-states
24:51 - Closing Thoughts - Reflections on the implications of proliferating zones for sovereignty, citizenship, and political organization
25:17 - Episode Framework - Brief explanation of the four recurring narratives that frame every Heliox episode
Index with Timestamps
## Index: Crack-Up Capitalism: Zones and Secession
Asian values, 14:17, 14:28
Apartheid South Africa, 15:42, 16:01
Balaji Srinivasan, 21:57
Belt and Road Initiative, 23:07
Berlin Wall, 04:16
Blank slate myth, 24:22
Bruce Benson, 18:22
Bruce Sterling, 20:09
Canary Wharf, 09:44, 09:56, 10:34, 11:16
Capitalism without democracy, 17:51, 22:40
China, 08:41, 08:53, 13:00, 14:55, 23:07, 23:25
Cloud countries, 20:05, 21:57
Confucianism, 14:28
Contractual government, 17:40, 17:51
Corporate governance, 22:16
Crack-up capitalism, 16:18, 16:24
Curtis Yarvin, 21:25
Democracy, 05:15, 05:30, 08:41, 09:24, 09:34, 09:56, 13:49, 14:19, 22:12, 22:40, 24:40
Dubai, 20:39, 20:41, 21:03, 21:10, 21:23
Economic freedom, 09:24, 09:29
Enclaves, 01:20, 07:03
Enterprise zone, 11:28
Experimental gradualism, 08:55, 08:57
Export processing zones, 01:50, 01:56
Fragmentation, 01:13, 01:15, 04:28, 04:31, 04:39, 04:46, 05:04, 21:53
Francis Fukuyama, 04:46, 04:51
Franchise nations, 20:03, 21:16
Free ports, 00:47, 03:37
Free to Choose, 07:19
Gated communities, 17:12, 17:19, 17:23, 18:37
Golden visas, 11:24
Governance as a service, 22:05
Greater London Council (GLC), 10:52, 10:55, 10:59
Hans Adon II, 19:23, 19:29
Hans Hermann Hopp, 16:53, 16:57
Heritage Foundation, 09:24
Hong Kong, 05:56, 06:43, 07:07, 07:44, 07:54, 08:15, 08:26, 08:41, 09:03, 09:12, 15:12, 24:27, 24:29
Hinterland, 13:31
Ideal container for capitalism, 05:42, 05:49
Islands in the Net, 20:09
Javsa International, 21:16
Ken Livingstone, 10:56
Lee Kuan Yew, 14:21, 14:46
Libertarian, 07:48, 15:44, 16:26, 18:02, 18:10, 19:16, 22:26
Liechtenstein, 19:02, 19:03, 19:16
London Docklands, 05:56, 09:44, 09:51
Margaret Thatcher, 10:52, 12:02, 12:08, 12:56
Market radicals, 05:22, 05:30, 12:43, 20:44
Michael Van Notten, 20:19
Micro secessionism, 05:42, 05:42
Milton Friedman, 07:17, 07:19, 08:16, 20:51
Mont Pelerin Society, 07:24, 07:27, 07:31, 08:02
Murray Rothbard, 16:28, 16:40
Nation state, 05:30, 05:56, 18:04, 21:41, 21:53
National termination, 08:36
Neoliberal Zion, 11:23
Online first approach, 22:05
Paleo-libertarian, 16:26
Peter Thiel, 06:29, 06:32, 23:22, 23:25
Portable Hong Kong, 08:11, 08:15, 09:09
POP (privately owned public space), 11:39, 11:42
Private utopias, 17:27
Prospera, 22:26, 22:47
Right to buy scheme, 12:08
Scalability, 22:05
Secession, 05:42, 16:32, 17:19, 17:51, 19:16
Shenzhen, 09:03, 22:47
Singapore, 05:56, 12:42, 12:43, 12:56, 13:03, 13:14, 13:37, 14:11, 15:03
Soft secession, 17:19, 17:23
Somalia, 20:14, 20:19
Sovereign individuals, 21:38, 21:41
Special economic zones (SEZs), 00:47, 09:02, 15:12
Startup cities, 22:26
Tax havens, 00:47, 02:07, 02:09, 19:47, 19:51
The Long Good Friday, 09:59, 10:01
Ugland House, 02:33, 02:34
Welfare dictatorship, 13:10
WTO, 04:18, 04:25
Yugoslavia, 04:30
Zones as lifeboat, 23:44
Poll
Post-Episode Fact Check
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Mind Map
