Weekly Report - 13 June 2013 (WR-13-23)

HONDURAS | Model cities but no model police force. Nine months after the supreme court (CSJ) ruled that the ‘model cities initiative’ championed by President Porfirio Lobo was unconstitutional, the legislative assembly has approved a bill creating a surrogate: economic development and employment zones (Zede). The new law envisages a dozen different types of ‘Zedes’, including international financial centres, autonomous cities, special economic zones, agri-industrial zones, tourist zones and mining zones. They will be “autonomous entities” with their own laws and tax system. They will remain under the sovereignty of the State but overlapping competencies could cause considerable tension with local authorities.