The first Special Development Region (RED, by its acronym in Spanish) will be built in Trujillo on the north coast of Honduras.

According to the agreement signed on Tuesday, the new cities will have their own legal and tax systems.

The agreement marks the beginning of a controversial experiment known as "model city", and inspired by the ideas of American economist Paul Rommer, who argues that cities that are better designed and ruled by better laws can help transform the economy of developing countries.

The government claims that this project will generate thousands of jobs and new development areas.

Indigenous communities are opposed to the "private cities", for fear of losing their territories.

Source: laprensa.hn

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President Juan Orlando Hernández announced the beggining of studies to create the first "charter city" in the south of the country.

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The law regulates the establishment and operation of Employment and Economic Development Zones, enabling the consultation of residents in the areas where they are to be set up.

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September 2012

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July 2011

Congress has approved a law governing the Special Development Regions (REDs in Spanish).

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