International tech futurists based in Próspera, a “charter city” on the Honduran island of Roatán, are hopeful about the country’s upcoming elections. The founder of Infinita City, a longevity and biotech startup on the island, posted on social media earlier this year that “we expect the next election in Nov 2025 to lead to a friendly administration that affirms our rights.” He also praised the role of the Trump administration’s belligerent stance in advancing that agenda, noting that “the socialists have been much more quiet since Trump/Rubio got into power.”
This corporate optimism comes after years of tensions with the progressive government of President Xiomara Castro. In 2021, President Castro and her left-leaning Libre Party rose to power promising to reverse decades of neoliberal policies. The vow to eliminate the Zones for Employment and Economic Development (ZEDEs) was a central pillar of this promise. Indeed, over the last four years, the small Central American nation has stood up to a project bankrolled by Silicon Valley billionaires, one that seeks to build a state within a state—and perhaps a future beyond democracy itself.
Backed by billionaire investors such as Peter Thiel, Sam Altman and Marc Andreessen, Próspera has been advertised as the forefront of a new model of development: “a governance platform” offering low taxes, minimal regulation, and private arbitration courts. The charter city is designed to attract foreign capital and technological innovation, while insulating itself against political shifts in Honduras. Instead, it has become a symbol of something darker in the eyes of many Hondurans—a libertarian experiment in modern-day colonialism.
The future of these experiments, however, remain uncertain as the country heads to elections at the end of the month. Will a Honduran population fed up with crime and impunity give the left another mandate to continue its fight for sovereignty? Or will the gains made by Castro’s administration be overturned as another country joins the regional right-wing tide?
Origins of a Libertarian Experiment
From their inception, the impetus for—and political force behind—the introduction of ZEDEs in Honduras has come from beyond its borders.
The ZEDE law was originally based on Stanford University economist Paul Romer’s concept of Charter Cities, a radical idea pitched as a way to speed up development that had, until then, lacked a viable test-case. Honduras, a country in the midst of political turmoil linked to a U.S.-backed coup in 2009, beckoned as a potential partner.
From their inception, the impetus for—and political force behind—the introduction of ZEDEs in Honduras has come from beyond its borders.
After the removal of then-President Manuel Zelaya, a succession of right-wing governments vowed to re-instill a neoliberal economic model that Zelaya had begun to reverse. After post-coup leader Porfirio Lobo Sosa (2010-2014) expressed interest in the idea and signed legislation establishing ZEDEs in 2013, the project took off with the ascension to power of Juan Orlando Hernández (2014-2022), a leader who now sits in a U.S. prison for drug crimes. Hernández, who met with Romer after seeing his 2009 TED Talk, championed the policy on the grounds that it would attract foreign direct investment and grow the Honduran economy. The ZEDE law allows for semi-autonomous economic regions within Honduras. These territories write their own rules, set their own taxes, and operate outside of most national laws.
Próspera, one of two ZEDEs in the country, was founded by Erick Brimen, a Venezuelan-U.S. national who believes that “prosperity hubs” like Próspera can be used as a tool to improve governance and living conditions in Latin America. Proponents such as current Próspera President–and former Mississippi State representative–Joel Bomgar—and other allied U.S. politicians champion Próspera’s potential to drive social and economic development, but the truth is more complicated. Critics argue that rather than delivering widespread public benefits as special economic zones are intended to do, Próspera prioritizes foreign entrepreneurship and speculative technology ventures for biohackers and crypto enthusiasts that exclude local populations. They argue that Próspera’s current structure and usage illustrate that ZEDEs offer little benefit to Hondurans, especially as they operate as isolated enclaves of deregulation that serve external markets.
Próspera ZEDE vs. The State of Honduras
In 2022, Castro’s government moved swiftly to repeal the ZEDE law, calling it a betrayal of Honduran sovereignty. Her repeal of the law, however, has not been straightforward. Though the Honduran Supreme Court upheld the repeal in September 2024—confirming that no new ZEDEs could be created and casting doubt on the legality of Próspera—the battle has continued. Even as the country’s highest court sought to end extraterritorial incursions on Honduran land, Próspera’s leadership refused to accept defeat.
To affirm their right to exist, Próspera has opened international arbitration against the state of Honduras through the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank with a claim of $10.7 billion. According to a press release in October 2025 by the Attorney General of Honduras, this claim has been reduced to $1.63 billion.
The United States, involved since the law’s inception, has made this battle more difficult. In 2022, Castro’s moves against the ZEDEs drew the ire of U.S. Senators Bill Hagerty and Ben Cardin, who penned a letter urging the State Department to encourage Honduras to honour legal guarantees with respect to U.S investments made in Próspera. In 2024, Tracey Mann, a U.S. Representative from Kansas made a similar argument after meeting with Próspera’s CEO Erick Brimen. Given that “Próspera has cracked the code on furthering America’s national security interests, bolstering relationships, and strengthening economic growth,” he argued that more must be done to “protect their work.”
As the country heads to elections, the threat of further retribution from the U.S. and international courts looms large.
Meet the Candidates
Honduran democracy is fragile. The country’s recent history has been marred by political crises, including U.S.-backed coups and electoral fraud occurring in both 2013 and 2017. While the 2021 election of Xiomara Castro was considered the country’s most democratic election in recent years, trust in democratic institutions is not absolute. This distrust has worsened following the country’s primary elections in March 2025, which were characterized by widespread irregularities.
Honduras has three main political parties, the Partido Libertad y Refundación (Libre) represented in the election by candidate Rixi Moncada, the Partido Nacional de Honduras (PNH) represented by Nasry ‘Tito’ Asfura, and the Partido Liberal de Honduras (PLH) represented by Salvador Nasralla.
As the country heads to elections, the threat of further retribution from the U.S. and international courts looms large.
Moncada, who served as Secretary of Defense and Secretary of Finance in the current Libre administration, has pledged to continue social programs started under Castro and has promised to reform the country’s economic system. Asfura, a former mayor of the capital Tegucigalpa who has faced credible accusations of corruption, has argued for more private investment to promote infrastructural development and a larger role for multinational corporations. Nasralla, a well-known public figure who has run for president several times and recently served as Vice-President during the Castro administration from 2022-2024, has focused his campaign on anti-corruption efforts and promised to implement a security crackdown inspired by Salvadoran President Nayib Bukele. Recent polls suggest that support for Moncada is declining, while support for Nasralla is increasing.
Each candidate has prioritized general themes such as security, governance, and economic growth, but the absence of official government proposals leaves a looming question mark on extractive land concessions like Próspera. The concession of land to Próspera by the Hernández administration is at the centre of Castro’s decision to repeal the law. For Próspera’s neighbors in the village of Crawfish Rock, Próspera represents a constant threat of land expropriation. If the new administration affirms Próspera’s “rights” to exist, rural and Indigenous communities that already face the brunt of “development” projects like Próspera could face even greater vulnerability.
On November 20, Florida Representative Maria Salazar—a well-known anti-Communist who has often threatened the region’s progressive leaders—delivered a polarizing statement to the Western Hemisphere Subcommittee in the company of Liberal Party Candidate Salvador Nasralla. She made the position of the United States clear. While urging for free and fair elections, Representative Salazar referred to Libre candidate Rixi Moncada as the “heir to the communist throne.” She doubled down on the U.S. support of the 2009-coup stating that “16 years ago, the military saved its country from communism and today, they need to do the same thing.” This begs the question: if Moncada is announced as the winner, will the United States accept this as the result of a free and democratic election?
Honduras on the Eve of Election
As Honduras approaches election day on November 30, the battle over Próspera embodies a larger struggle over who controls the future of governance itself. The outcome may decide not just the fate of one small nation, but the direction of democracy in the age of billionaire power.
Indeed, the fate of Próspera has repercussions that stretch far beyond Honduras. Próspera is not an isolated experiment but rather forms a part of a growing network of digital and territorial “exit” projects that are constructed by a new class of techno-libertarians who believe that the future of freedom lies beyond the reach of the nation-state. Though often couched in the language of economic development and innovation, they are, in practice, mechanisms for the consolidation of elite power, enabling billionaires to operate with legal immunity and ideological impunity.
If sovereignty can be outsourced and democracy treated as an obstacle to efficiency, then the very idea of collective self-determination is at risk.
As Honduras confronts Próspera’s legal offensives under mechanisms like the Dominican Republic–Central America–United States Free Trade Agreement‘s (CAFTA-DR) investor-state dispute system, the clash between global capital and national democracy has never been starker. The story of Próspera exposes how tech billionaires, investing in experimental zones of governance, can exploit global frameworks to pursue exit from the nation-state and circumvent national opposition. The repeal of the ZEDE law and subsequent legal challenges thus signals a crucial turning point.
For nations like Honduras, the implications of these struggles are profound. If sovereignty can be outsourced and democracy treated as an obstacle to efficiency, then the very idea of collective self-determination is at risk. Próspera may be small, but its ambitions are planetary—a prototype for a world where borders are optional, laws are negotiable, and citizenship is something you buy.
With elections looming and political tensions high, a new government could choose to reverse course—or double down. In the struggle between a small Central American nation and the billionaires of Silicon Valley, the future of democracy in the digital age may quietly be decided.
Olivia Pavan is a master’s student at Dalhousie University. Her academic interests center on neoliberalism and globalization, urban development, and resource extractivism. Her research and advocacy are deeply rooted in human rights solidarity work across Central America.
Kate Swanson is a Professor in International Development Studies and Canada Research Chair in International Peace, Security and Children at Dalhousie University in Halifax, Canada. Much of her recent research has focused on youth migration, violence, borders, and forced displacement in Latin America and the U.S./Mexico border region.