Próspera: The Controversial For-Profit City in Honduras

Próspera is a private, for-profit city established in 2017 on the Honduran island of Roatán, designed to attract foreign investment through low taxes and minimal regulation. The city operates under a semiautonomous jurisdiction known as a ZEDE, allowing businesses to select regulatory frameworks from various countries or create their own. The city has raised $120 million in investments from notable Silicon Valley figures, aiming to develop the area into a leading start-up city. The city features a range of amenities, including a Bitcoin cafe, a genetics clinic, and a manufacturing plant for modular houses designed by Zaha Hadid Architects. With a population of around 2,000 residents and e-residents, Próspera is governed by a private firm providing security and an arbitration center for dispute resolution. Despite its ambitious plans, Próspera faces significant opposition from the Honduran government, which seeks to dismantle the project. The government views the city as illegal and is concerned about its implications for national sovereignty and local governance. As tensions rise, the future of Próspera remains uncertain, with the potential for conflict between the city’s private governance model and the Honduran state. The outcome could have lasting effects on the region's economic landscape and the viability of similar projects in the future.