This is the Cato Daily Podcast for Wednesday, March 9, 2022.

I'm Caleb Brown.

How do you create a new kind of government?

A regulatory structure that you can bring with you into a country.

It sounds pretty complicated, but in the case of Prospera now operating in Honduras, that's

the goal.

Joel Bomegar is the president of Prospera, we spoke last month.

There are a lot of businesses that don't exist because of the regulatory environment in which

those businesses would have to exist.

So what is the wager that Prospera is making?

So Prospera is wagering that we have created the best regulatory environment anywhere in the world

and that businesses who currently are curbed in their ability to innovate, can innovate to the maximum degree that they are capable

within the confines of Prospera.

Okay, so what is the arrangement?

Like we understand that there are federal regulations. We understand that there are federal regulations.

We understand that there are international treaties that governments sign with one another.

There are regulations at the state level.

There are regulations at the city level. There are regulations at the city level. There are regulations at the neighborhood level. Zoning is a regulation of the property you have your house sitting on.

So what is the... property you have your house sitting on.

So what is the arrangement that Prospera has with the government of Honduras?

So the arrangement is essentially a charter city arrangement where Prospera operates in a semi-autonomous economic zone.

And so all of the things you mentioned, regulation, taxation, the legal system zoning planning

...