Próspera is an experimental city located on the Honduran island of Roatán, developed and managed by a U.S.-based corporation. Established in 2017, Próspera operates under a unique legal framework known as a ZEDE (Zone for Employment and Economic Development), which allows it to function with a high degree of autonomy from the Honduran government. This framework enables Próspera to set its own rules, regulations, and tax policies, making it a sort of “startup city” designed to attract foreign investment with promises of low taxes and minimal regulatory oversight.
The city aims to be a hub for innovation and entrepreneurship, attracting residents and businesses worldwide who are looking for a more flexible and business-friendly environment.In Próspera, businesses can choose from a menu of regulatory frameworks from 36 different countries or even create their own, which is a significant draw for companies looking to operate with fewer constraints. The city has attracted investments from notable Silicon Valley figures like Peter Thiel, Sam Altman, and Marc Andreessen, who see it as a frontier for new forms of governance and economic development.
However, Próspera is highly controversial. Critics argue that it represents a form of neocolonialism or “corporate monarchy,” where foreign investors and corporations exploit local land and labor under a guise of economic development. The city’s governance model, which allows it to bypass many Honduran laws, including labor and environmental regulations, has sparked significant local and national opposition. Many fear that Próspera’s ability to “opt-out” of traditional government oversight creates an uneven playing field and poses risks to local communities’ rights and resources.
Moreover, the lack of transparency and accountability in Próspera’s operations has raised concerns about governance and social justice. For instance, a mishap in which a worker fell to his death at a construction site in Próspera brought to light questions about workplace safety and regulatory oversight. Critics argue that the self-governed nature of Próspera makes it difficult to hold those in power accountable for such incidents, highlighting the potential dangers of a privatized city model.
What is Prospera?
The project has also faced strong resistance from the Honduran government and local communities, who view it as an overreach into national sovereignty and a threat to local culture and livelihoods. In response to these controversies, the Honduran Congress has taken steps to repeal the ZEDE law that allows Próspera to operate, putting the city’s future in a state of legal uncertainty. This ongoing battle underscores the complex and often contentious nature of Próspera’s existence, raising fundamental questions about the balance between economic development, sovereignty, and social equity.