[shaddi]

Of course, that is clear. However, declaring a Charter City won't magically erase corruption and other structural causes of poverty, and bringing in a foreign party to impose governance brings its own set of issues / has historically not worked out well.

Something closer to the lines of SEZs seems to capture the best of both worlds and makes more sense to me. It's a way to encourage liberalization (which we'll accept as a purely good thing for now, though obviously there is debate on that), bring in improved regulation, and provide some foreign expertise which could be helpful. It also aligns incentives a bit better, since it specifically focuses on business, rather than all aspects of governance (it's easier for us all to get along when we're in a mutually profitable relationship).

[anigbrowl]

The problem with a SEZ is that most people don't want to be industrialists, so an industrial park doesn't seem all that exciting unless you own a slice of it. At best, for ordinary folk all it does is jobs. That's a good thing, but there's more to life than just working.

A city, on the other hand, is somewhere to live. Poorer residents might work the exact same hours for the same pay, but living in the same place that they work means they're getting indirect benefits like physical and legal infrastructure. They're not just bussed into the SEZ to work in the morning and bussed out again in the evening, back to their 3rd world existence where they may have few economic or political rights. A SEZ on its own only produces goods, but a city produces people and lifestyle and cultural wealth, and thus fills an aspirational function. People go to big cities to pursue their dreams and make money, even though they know it may be expensive and difficult. A SEZ with nobody living inside it is just a place to work, and reduces the people who work there to commodity labor with no stake in the longer-term future of the place.

[shaddi]

Excellent point -- no simple solutions. It's why this is a hard problem.