For those not following the Honduran experiment with ZEDEs (las Zonas de Empleo y Desarrollo Económico — Zones for Employment and Economic Development) also known as “charter cities” or “model cities”, Scott Alexander provides a handy summary of the situation in the wake of the recent Honduran elections:
Honduras, Guatemala and El Salvador
Image via Google Maps.
The socialist opposition has won Honduras’ election and pledges to fight against charter cities there. “Immediately upon assuming the presidency, we are going to send the National Congress an initiative for the repeal of the ZEDE law,” incoming president Xiomara Castro said.
This was what everyone was afraid of. But the last party tried pretty hard to protect ZEDEs from trigger-happy successors, and the constitution currently says that the only way to get rid of them is to win two consecutive 2/3 votes to do so, then give the existing projects ten years to wind down.
Can the socialists get a 2/3 majority? Wikipedia predicts the incoming Honduran Congress will look like this:
Liberty and Refoundation (the socialists) will probably enter into a coalition with the Savior Party and have 65/128 seats for a bare majority. They need 86 votes for a 2/3 majority, which in theory they can get if the Liberal Party agrees. The Liberal Party seems centrist and hard to pin down, but this article includes the following great quote:
“The Liberal Party opposes the ZEDEs because, above all, they undercut our national sovereignty, and because we don’t want them to become hideouts for extraditable criminals,” said [Liberal Party leader Yani] Rosenthal, who served a three-year prison sentence in the United States for money laundering and participating in a criminal scheme with the Los Cachiros cartel.
Rosenthal kind of goes back and forth elsewhere, but in the end I think he’ll vote with the socialists on this. Still, there’s some speculation that his party might not vote as a bloc, and even a few defectors would be enough to prevent a supermajority.
In theory, even if the socialists win two consecutive votes, they have to give the projects ten years to wind down. Ten years is forever in politics, and probably before then the capitalists will get back into power and say never mind, everyone can keep doing what they’re doing. The socialists are aware of this and say that their supplementary strategy is to have everything about the ZEDE law declared unconstitutional.
This should be a hard sell, because ZEDEs are a constitutional amendment, plus the current Supreme Court explicitly ruled a few years ago that they were constitutional. But apparently the Honduran Supreme Court can declare constitutional amendments unconstitutional if it really wants. And the new government will get to appoint a new Supreme Court in two years, and although the exact process is complicated, they may be able to get people who agree with them on this.
Also, incoming president Castro is married to Manuel Zelaya, a former president who tried to pull an Andrew Jackson after the Supreme Court ordered him to stop holding an illegal referendum to change term limits in his favor. He ordered the military to hold the referendum anyway, and was only ousted after the military couped him instead. So this is not exactly a family known for their deep respect for the exact wordings of laws or court rulings (not that anyone in Honduras has really excelled on that front). See further speculation eg here and here. And here’s Mark Lutter from Charter Cities Institute on the elections and the future.
