The private sector in Guatemala has presented the government with a comprehensive plan for security and justice, which aims to reduce the incidence of violence by 2021 and improve the country's competitiveness.
Taken from the Foundation for Socio-Economic Development of Guatemala:
When referring to the creation of more and better opportunities as the main goal in the country's development agenda, it is not possible to ignore addressing three important points: (1) opportunities should be focused on creating a better country for everyone, (2) better opportunities should be based on the idea that every person is capable of being the engine of their own development, and (3) it is necessary to have a clear horizon toward which are oriented actions of the actors committed to supporting the process. Any initiative that is supported today will take at least a decade to have an effect on the quality of life of Guatemalan families, which can only be assessed if access to basic services, as well as the purchasing power of heads of households, provides better living standards than those which are visible today.
A logistics park, a port and a center for agricultural research and development in the Gulf of Fonseca would be the basis of the first Employment and Economic Development Zone (ZEDE by its initials in Spanish).
From a statement from President of Honduras:
September 23, 2014. At a meeting on Monday in New York City, the United States, consultants from the International Cooperation Agency of Korea (KOICA), handed to President Juan Orlando Hernández the first three possible projects which in the future which could materialize as the Employment and Economic Development Zone (ZEDE) in the Gulf of Fonseca.
The private sector has proposed creating development zones with specific tax laws and tax free status in order to encourage local and foreign investment.
Following a concept created by economist Paul Romer and implemented in cities such as Hong Kong, and proposed in Honduras through the passage of a law last year, Salvadoran businessmen are proposing 29 law reforms in order to create development zones which have their own laws to enhance the competitiveness of companies located within them.
President Juan Orlando Hernández announced the beggining of studies to create the first "charter city" in the south of the country.
Juan Orlando Hernandez, president of Honduras, reported that studies have been started on the creation of a "model city" in the style of Hong Kong in order to promote investment and employment. The initiative includes a port on the Gulf of Fonseca, on the Pacific side.
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.
Laprensa.hn reports that "With 102 votes in favor and 26 against, late on Wednesday deputies approved the Honduran Law on Areas of Employment and Economic Development (ZEDE by its initals in Spanish), better known as model cities. .. "
Honduran constitutional amendments passed by Congress have revived the "zones subject to special law regimes".
By a large majority (110 votes to 128), the Honduran Congress approved the modification of three articles of the country’s constitution, giving powers to Congress to create areas subject to special arrangements, referred to as "Model Cities" that were declared unconstitutional last October for being considered "states within a state."
Under the name of Special Development Regions (Regiones Especiales de Desarrollo or RED in Spanish) the National Congress of Honduras is debating a new version of the law that creates these special cities.
The bill, which sets out reforms to articles 294, 303 and 329 of the Constitution, was introduced by government minister Rodolfo Irias Navas.
"Congressman Irías said his intention is to create the same regions that had already been approved but which the Constitutional Chamber of the Supreme Court of Justice ruled illegal.
The Supreme Court of Honduras has declared as unconstitutional the legislative decree that created the figure of the "charter cities".
With 13 votes in favor and one against, the Court decided to declare Decree No. 283-2010 unconstitutional, arguing that the reform "violates constitutional principles such as sovereignty, territory and the form of government."
A protocol signed by the Government of Honduras with the developer NKG does not include the Transparency Commission announced as part of the governance system for "private cities".
Honduras had planned to appoint five international experts, including the driving force behind the concept, economist Paul Romer, to form a transparency committee, to ensure the necessary safeguards to protect Honduras and its workforce, and to enforce good governance in the "private cities".
The Commission for the Promotion of Public-Private Partnerships has signed an agreement with the international consortium MKG Group who will initially invest $15 million.
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.
Congress has approved a law governing the Special Development Regions (REDs in Spanish).
The law states that the REDs are allowed to have their own budget, the right to collect and administer their own taxes, to determine the rates they charge for their services, to hold all types of contracts that extend to the next period of government, and manage their own internal and external debts as long as they have the approval of the State of Honduras.
A constitutional statue law on the Special Development Regions (RED’s by Spanish initials) has been approved in the first debate in Congress.
The new law defines RED’s as autonomous cities, which will be led by an "executive governor", a "policy board" and a "constitutional council". The governor will also serve as executive chairman, who will issue policy advice laws and finally the "constitutional council" will apply the laws through judges.
The Government of Honduras signed an agreement with the Korean company Posco, to carry out feasibility studies for the construction of the first "charter city".
The agreement states that the Korean company will perform the necessary analysis to determine whether it is possible to build the charter cities in selected regions.
A Honduran government delegation headed by President Wolf, traveled to South Korea in February, which allowed closer business ties to be forged with companies such as Posco.
The countries agreed to cooperate in the development of special management areas in Honduras.
"Charter Cities" are development-oriented, and the objective pursued by President Porfirio Lobo is to encourage domestic and foreign investment.
"During their meeting, Wolf and Lee agreed to cooperate in the development of such plans for special areas in Honduras and seek ways to collaborate in trade, investment, education, health and infrastructure development in the Central American country," Terra.com informs.
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