Giving Compass' Take:

• In this story from 80,000 Hours, Robert Wilbin and Keiran Harris discuss how charter cities might be a innovative strategy for fighting poverty.

• What obstacles might proponents of charter cities encounter? Why has this idea not yet been implemented?

• To learn about the traditional global strategies which have been used to combat extreme poverty, click here.

Governance matters. Policy change quickly took China from famine to fortune; Singapore from swamps to skyscrapers; and Hong Kong from fishing village to financial centre. Unfortunately, many governments are hard to reform and — to put it mildly — it’s not easy to found a new country.

This has prompted poverty-fighters and political dreamers to look for creative ways to get new and better ‘pseudo-countries’ off the ground. The poor could then voluntary migrate to in search of security and prosperity. And innovators would be free to experiment with new political and legal systems without having to impose their ideas on existing jurisdictions.

Nobel Prize winner and World Bank President Paul Romer suggested ‘charter cities’, where a host country would volunteer for another country with better legal institutions to effectively govern some of its territory. But that idea too ran aground for political, practical and personal reasons.

Now Dr Mark Lutter and Tamara Winter, of The Center for Innovative Governance Research (CIGR), are reviving the idea of ‘charter cities’, with some modifications. Gone is the idea of transferring sovereignty. Instead these cities would look more like the ‘special economic zones’ that worked miracles for Taiwan and China among others. But rather than keep the rest of the country’s rules with a few pieces removed, they hope to start from scratch, opting in to the laws they want to keep, in order to leap forward to “best practices in commercial law.”

Read the full article and listen to the podcast about charter cities by Robert Wiblin and Keiran Harris at 80000hours.org