Video Briefing

Expat Money ®: The Future of International Cities – Titus Gebel

Nov 15, 2023Video Briefing55:39Watch on YouTube

International cities, free private cities, and more autonomous special economic zones are presented as a possible answer to declining trust in traditional governments. The core idea is to treat government as a service: residents voluntarily enter under a written contract, pay a fixed fee, and receive defined protections for life, liberty, and property.

The concept grew out of frustration with traditional politics. The argument is that democratic systems tend to reward parties that promise security, benefits, redistribution, and “free” services, while ideas based on freedom, responsibility, and accountability struggle to win majority support.

Instead of trying to reform existing states through elections or activism, the proposed model is to create new jurisdictions inside host countries, with negotiated autonomy and clear contractual rules.

From special economic zones to international cities

Special economic zones are already common around the world. More than 150 countries have over 5,000 special economic zones.

The trend has moved through several stages:

  • free ports,
  • export-processing zones,
  • manufacturing zones,
  • industrial zones,
  • tourism zones,
  • financial zones,
  • special jurisdictions with their own courts and legal systems.

Dubai International Financial Centre is used as an example of a more advanced model. It has its own courts and legal system and even its own family law framework to attract expatriates. Similar models have been copied in Abu Dhabi and Kazakhstan.

The transcript argues that special economic zones are becoming more autonomous over time. It also argues that privately administered zones are often more successful than state-run zones.

The next step proposed is for governments to delegate certain governance functions to private operators under an agreed legal framework. This is described as “government as a service.”

Government as a service

The proposed international city model is based on a service contract rather than ordinary citizenship or tax residence.

Residents would pay a fixed fee. In exchange, the operator would provide a defined service: protection of life, liberty, and property.

The key difference from ordinary government is contractual certainty. In a normal state, taxes and rules can change every year, often without the individual’s consent. In an international city, the resident would sign a contract, and the operator would not be able to change core terms unilaterally.

Examples of fixed-contract principles include:

  • the resident pays a defined fee,
  • the operator provides defined protections,
  • the contract cannot be changed without both sides agreeing,
  • the operator can be held liable if it fails to provide the agreed service,
  • disputes with the operator can go to external courts.

This is contrasted with ordinary states, where citizens are treated more like subjects than customers. The transcript compares the current model to a car dealer who decides the model, color, engine, interior, price, and then forces the customer to buy.

Why “international cities” instead of “free private cities”

The original term was “free private cities,” but governments often react badly to the words “free” and “private.”

The term “international city” is now preferred because it is broader, less politically provocative, and signals that the city is designed to attract people from many countries.

The intended model is not one isolated city, but a network of international cities. If a person is approved in one city, it may become easier to move between other cities in the network.

Over time, the network could allow:

  • similar legal frameworks,
  • easier movement between cities,
  • potential visa-free movement inside the network,
  • shared standards,
  • city-to-city economic links,
  • different cities with different specializations.

The historical comparison is the medieval free cities and leagues such as the Hanseatic League, where cities cooperated across borders and built commercial networks.

Why host governments may agree

The model depends on governments granting autonomy to a zone or city.

Governments may be interested because international cities can bring:

  • investment,
  • jobs,
  • new residents,
  • tax or fee revenue,
  • infrastructure,
  • international attention,
  • business activity that would otherwise go elsewhere.

The challenge is political risk. Governments may fear doing something too new or too radical. It helps if similar models already exist elsewhere. The transcript mentions Honduras, Albania, Dubai, Abu Dhabi, Kazakhstan, Hong Kong, Singapore, and Monaco as examples or reference points for different elements of the model.

The proposed model is not fully new. It is described as perhaps 40% new, because parts of it already exist in city-states, special economic zones, special administrative regions, and autonomous legal zones.

Why secrecy matters during negotiations

The transcript says exact countries usually cannot be named while negotiations are ongoing.

The reason is politics. Creating an international city often requires a law to be passed, followed by a contract with the government. If the country is named too early, political opposition may attack the project before the legal framework is complete.

Common political attacks may include claims that the government is “selling out” the country.

For that reason, countries may only be disclosed after the law is passed and the contract is signed.

The regions where discussions or possibilities are mentioned include:

  • the Caribbean,
  • Central America,
  • Africa,
  • parts of the Middle East,
  • the Far East,
  • some less autonomous possibilities in Europe.

The transcript suggests the first stronger examples are more likely in the Caribbean, Africa, or Latin America.

Honduras and Próspera

Honduras is presented as an early real-world example.

The legal structure for ZEDEs was established in 2013, and the first approval came at the end of 2017. The project later became known as Próspera.

The transcript describes it as a hybrid model rather than a perfect free private city, but still an important proof of concept.

Próspera is said to remain active despite political attacks from a socialist government. More people and companies are reportedly moving there, which is presented as evidence that the model is not merely theoretical.

Why the model appeals to internationally mobile people

The transcript connects international cities with broader capital flight and relocation trends from Western countries.

The argument is that many wealthy families and entrepreneurs are leaving countries such as Canada and the United States because of:

  • rising government control,
  • higher taxes,
  • political uncertainty,
  • lack of predictability,
  • account freezes,
  • growing regulation,
  • loss of trust in institutions.

The example of Canada is used in connection with bank accounts being frozen after protests.

The problem is that moving from a Western country to a developing country can create new concerns, especially around rule of law, corruption, efficiency, business security, and property protection.

International cities are intended to offer a first-world rule-of-law environment inside countries that may otherwise lack those protections.

Taxes, fees, and digital nomads

The transcript argues that a fixed-fee government model may fit the modern world better than traditional taxation.

Digital nomads, remote workers, and internationally mobile entrepreneurs often create tax questions because they may live in one country, work for a company in another, and serve customers elsewhere.

A fixed-fee model avoids many of these conflicts. The resident pays for the service they receive inside the city, rather than becoming trapped in unclear tax systems.

The model is also contrasted with citizenship-based taxation, especially the U.S. system, where citizens may owe tax even after leaving the country.

French citizenship is mentioned as another example where leaving or renouncing citizenship can become difficult.

Contract rights versus ordinary residence

Monaco is used as an example of a desirable low-tax jurisdiction where non-citizen residents may still have limited rights. A foreign resident may enjoy the benefits of living there, but without a clear service contract protecting their position.

International cities aim to provide more certainty by giving residents written, enforceable rights.

The contract could cover:

  • fixed fees,
  • property rights,
  • dispute resolution,
  • operator obligations,
  • resident obligations,
  • limits on rule changes.

Some areas may still need flexible rules, such as traffic regulation. But the core economic and legal terms would not be changeable at will.

Host-country limits

International cities would not be fully sovereign. They would remain inside host countries.

This means they may need to respect certain host-country public-order rules. Different host countries may have different limits. For example, one country may be relaxed about firearms but strict about cannabis, while another may be relaxed about cannabis but strict about firearms.

Each international city may therefore have slightly different rules depending on the host country and negotiated framework.

The goal is not to impose one universal city model on the world, but to create multiple options with shared core principles.

Culture, architecture, and community

The movement is still young. Earlier discussions focused mostly on theory and technical design. The next stage is expected to focus more on the human side of moving to these places.

Important questions include:

  • what it means emotionally to move to a new country,
  • whether families will feel comfortable,
  • whether the culture is attractive,
  • how the city looks and feels,
  • whether architecture supports a good community,
  • whether people will want to raise children there,
  • how residents form trust and social ties.

The third edition of the book discussed in the transcript adds new material on practical experience, special economic zones, special administrative regions, culture, architecture, COVID-era governance, and ethics.

The architecture point is important because the model should not become a top-down master plan imposed by a single expert. The suggested approach is to let the market and residents shape the city within a framework of good rules.

Activism versus building alternatives

The transcript argues that activism has largely failed as a way to reduce state power. Many people have spent years trying to push back politically, but the result has often been disappointment.

The alternative is to build parallel systems.

Relocation is described as one early version of this: people choose a country whose rules better match their preferences. International cities are presented as the next step, because they add a written contract and clearer rights.

The project is voluntary. Anyone who dislikes the contract does not need to sign it or move there. Anyone who accepts the terms enters knowingly.

Why network effects matter

One international city would be useful, but a network would be much more powerful.

The transcript compares this to computers or telephones. One computer connected to the internet is not very useful if nobody else is connected. The value rises as more people and places join.

A network of international cities could become more valuable because residents, companies, and capital could move between them more easily.

Cities could be located across different regions and serve different groups, while maintaining shared core values around contract, safety, rule of law, and voluntary association.

Practical takeaway

International cities are presented as a way to make governments compete for residents by turning governance into a contractual service.

The model does not aim to overthrow existing states. It aims to negotiate with host governments, create autonomous zones, attract investment and residents, and offer a more predictable legal environment for people who want freedom, rule of law, and self-responsibility.

The main obstacles are political approval, legal autonomy, public perception, and the practical challenge of building places where people actually want to live.

The core promise is simple: residents should be treated as customers, not subjects. They should know what they pay, what protection they receive, and what rules apply before they move.