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Sunday, February 7, 2010

HBR's Top 10 Breakthrough Ideas for 2010: Global Economy

#9. Global Economy: Creating More Hong Kongs: How charter cities can change the rules for struggling economies (by Paul Romer). Hong Kong has become a model for transforming the economics of countries. Between Britain’s government administration, which made the region livable, and China’s recognition Hong Kong as a kind of special enterprise zone. As a result, Hong Kong has developed into an economic city state [my word]. It’s also a modle for what other countries can do.

The Breakthrough Idea: Creating economic city states is like starting an autonomous corporate division. New rules need to be allowed in order to kick start the new third party enterprise. Countries can offer a safety value arrangement to get the “new division” up and running. For example, the author suggests that if the US gave up Guantanamo Bay and the Canadians partnered with the Cubans to develop a new city state, it would have the same advantage as did Hong Kong: Stability (Canada) and location (Cuba).

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