Brandon Fuller
Romer on Urbanization, Charter Cities, and Growth Theory
Paul Romer sits down with journalist Cloud Yip in Hong Kong to discuss charter cities, the state of growth theory, and the importance of urbanization.
Paul Romer explains the work and motivations of the NYU Stern Urbanization Project's Charter Cities initiative.
New cities. More Choices. Better rules.
The Charter Cities initiative works with governments in rapidly urbanizing countries, focusing on the potential for startup cities to fast track reform. Collectively these countries will add billions of new residents this century. Existing cities will expand, and entirely new cities will emerge. We encourage reform-minded leaders to use new cities as a mechanism for change—a way to experiment with new rules that can offer people more job opportunities and new ways to make progress in both their own lives and the lives of their children.
A charter city is a type of civic startup, a framework for reform. Civic startups allow societies to experiment with new rules, but to do so in ways that do not force change on those who don’t want it. They are attractive to people who want to try new ways of doing things. Because participation is voluntary, the social norms of those who participate work to legitimize the new rules that a civic startup puts to the test. Like other civic startups, a charter city offers a way to break out of systems of rules that otherwise deprive people of chances to reach their true potential.
A Flexible Framework for Reform
Reformers can start a charter city by enacting founding legislation—or a charter—that commits a public entity to key principles of reform. Though the specifics of reform depend on the local context, all charter cities share two foundational principles: people must be free to choose whether to move in, and those who do must enjoy equality under the law. Opt-in and equality under the law ensure that everyone has a stake in the economic and cultural life of the new city.
Grounded in these foundational principles, charter cities offer a great deal of flexibility for reform. Many will begin by identifying and adapting good rules from elsewhere in the world, much like Shenzhen did when it adopted rules that allowed China to reap the gains from global economic participation after a prolonged period of economic decline. Some charter cities will draw on the expertise of different national or municipal governments, engaging reputable partners in an effort to attract residents, businesses, and investors.
Startup Thinking at the City-Scale
Charter cities will start small. But by thinking at the city-scale, leaders can give the reforms in a charter city room to succeed—the potential to attract millions of people, most of whom will be heading to cities this century anyways. A successful charter city could not only host millions of residents, it could also influence welfare-enhancing change in the broader society by demonstrating the benefits of reform.
The world has locations where many new cities could be built. The benefits that these cities could generate are so large that they could be self-financing. There is no doubt that some upstart cities will fail to take off. However, those that do succeed will quickly give new social and economic opportunities to millions of people who currently lack good options—generating benefits that dwarf the costs from experimenting with new cities that never manage to get off the ground.
At their best, cities are environments in which people can earn incomes, raise healthy families, and find meaning in their lives. We’re working with governments to realize a world in which every family can choose between several safe, vibrant, and economically dynamic cities, each of which is vying to attract them as residents.
Charter Cities FAQs
The world doesn't need more gated communities for the rich, it needs cities that welcome all residents and provide ample opportunity for formal sector employment.
Paul Romer describes the opportunity that the charter cities framework presents for reform-minded leaders in rapidly urbanizing countries.
Paul Romer describes how charter cities can help to generate new choices for people in rapidly urbanizing countries.
When it comes to establishing special reform zones, rapidly urbanizing countries should be thinking at the city-scale.
Paul Romer describes how countries can get started on establishing new cities in reform zones, even in the absence of every detail.
Urbanization presents new opportunities for international cooperation—for countries to leverage one another's expertise and experience. Paul Romer discusses the case of the air safety turn around in China.
Paul Romer describes the potential for international cooperation in a charter city, specifically the idea of importing regulatory services.
What would success look like for the Charter Cities initiative?
Paul Romer explains the role of startups in the history of human progress.
Paul Romer discusses the role startups can play in the diffusion of new technologies and rules.
Paul Romer on the notion that rapdi urbanization creates tremendous opportunities to speed up human progress.
Paul Romer describes the personal motivation behind his work at the NYU Stern Urbanizaton Project.
Paul Romer on the dynamics of social norms and the process of human development.
Paul Romer on the role that the NYU Stern Urbanization Project can play in advising rapidly urbanizing countries.
Russ Roberts & Paul Romer on Urban Growth
Paul Romer recently sat down with Russ Roberts of EconTalk to discuss charter cities, urban population density, driverless cars, and pro-poor economic development.
Ideas Never Sleep: City as Startup
Paul Romer sits down with NYU Stern's Ideas Never Sleep team to discuss the notion of the city as a startup as well as the imperatives for today's fast growing cities.
Paul Romer
Reform Zones vs Concession Zones
In a recent talk, I drew a distinction between reform zones and concession zones — placing my own notion of a charter city within the category of a reform zone.
Paul Romer's Keynote at the New Cities Summit
See Paul Romer's keynote address at the New Cities Summit in Dallas, June 2014. In it, he covers urban expansion, charter cities, public safety, and urban mobility.
Approaching the City Through Pasteur's Quadrant
Paul Romer's recent University Professorship lecture placed the study of cities in what political scientist Donald Stokes referred to as Pasteur's Quadrant.
Kari Kohn
Trust in the Changing World
Firms in the sharing economy are learning how to establish trust.
Making Cities the Focus of the Sustainable Development Goals
Richard Florida makes a strong case for putting cities at the center of the UN's Sustainable Development Goals.
Completing the Urbanization Project
Richard Florida covers a recent Marron Institute working paper by Brandon Fuller and Paul Romer, Urbanization as Opportunity.
Urbanization & Trade in Government Services
The Economist writes about the idea of government-to-government services, citing some of our work here at NYU.
Weak Governance and Rapid Urbanization
Less developed countries will become increasingly urban this century, often at historically low levels of GDP per capita and historically weak levels of governance.
Boardinghouses of Yesterday and What They Mean for Today
The history of boardinghouses in the United States is an interesting case to consider during the current wave of urbanization.