Can "charter cities" lead to development and economic growth? A Q&A with Paul Romer

Weak institutions and bad rules are some of the most significant obstacles to economic growth in developing countries. Paul Romer, an economist known for his work on economic growth, has a plan to change that and recently resigned his tenured teaching position at Stanford to devote his full energies to the challenge.

“Moving from bad rules to better ones may be much harder than most economists have allowed.”

Romer’s plan calls for the establishment of Hong Kong-like “charter cities,” special zones within developing countries with better rules and institutions.

The project has already attracted quite a bit of attention from both economists and the media. William Easterly, the development economist, told Newsweek, “There’s a thin line between revolutionary and crazy. Paul Romer has been adept at walking that line throughout his career, staying just out of the crazy part. He’s still tiptoeing along that line with this new idea.”

Read the full Q&A here