How can a poor country, constrained by bad rules and weak institutions, break out of poverty? Aid in the last sixty years has been an ineffective response. Renowned growth economist Professor Paul Romer recently suggested that the way for rich countries to help poor countries develop rapidly is not by increasing aid, but by developing what he calls “charter cities”, or special administrative zones with sound rules and institutions, pro-growth and investment-friendly policies, and environmentally sustainable practices. These zones will administered by a coalition of best-in-class governments and businesses.
In many ways, Singapore’s ventures in Suzhou, Tianjin and going forward, Guangzhou, represent a kind of charter cities. Within the framework of rules and institutions put in place by Singapore Inc, and modelled on the Singapore governance system, these new mini-cities have created jobs for thousands of Chinese, enabled technology transfer, facilitated rural-urban migration, and put in place the infrastructure that supports economic growth.
What can we learn from Singapore’s experiences in Suzhou and Tianjin? Can the Singapore model be scaled and replicated elsewhere, as part of a broader template of charter cities? What are the governance and institutional challenges inherent in developing charter cities?
In this roundtable, Professor Paul Romer will discuss his idea of charter cities, and the practical issues and implementation challenges involved in developing them. The discussion will also identify implications and lessons for Singapore.
For more about Professor Paul Romer’s idea of charter cities, please see here.