This is the Cato Daily Podcast for Tuesday, December 10th, 2013.

I'm Caleb Brown.

Letting localities opt out of government regulation and red tape could be a way of revitalizing much of Latin America.

Senator Rand Paul thinks it will work for Detroit as well.

But leap zones, an idea promoted by Mark Klugman,

would allow localities to change their legal, economic, administrative, and political regimes.

It's an idea he says is getting results.

We spoke last week.

A leap zone is a tool for increasing faster, producing faster economic growth with less conflict.

It's a way of very quickly in comparatively small areas of land of ramping up institutional function and competitiveness.

The word leap is an acronym, legal, economic, administrative, political jurisdictions.

We talk sometimes about special economic, single word economic zones. A Leep zone, it's not one thing, it's four things, it's legal, who are the courts, who are the judges, is there

rule of law?

It's the second thing, economics, yes, what are your taxes? What is your tariffs?

It's a third thing administration. Is it providing transparency and

efficiency or is it corrupt? Is it inefficient? Does it move at the speed

of markets and technology in the 21st century or does it move at the speed of

politics and bureaucracy and 20th century third world countries.

And the final leg, the P, political, the governance model.

Is this all going to be washed away the next time

there's an election?

What is the guarantor that there will be transparency

...