Ciudad Morazán & ZEDEs: Frequently Asked Questions

1. What is the Morazan model for Free Cities?

The Morazan model is a framework for creating Free Cities—privately developed, semi-autonomous zones with business-friendly governance, legal stability, and market-driven services, aiming to attract entrepreneurs and investors.

2. What are ZEDEs and how do they differ from traditional municipalities in Honduras?

ZEDEs (Zonas de Empleo y Desarrollo Económico) are special economic zones with independent legal and administrative systems, allowing them to establish their own regulatory, judicial, and tax structures, unlike traditional municipalities governed by Honduran national laws.

3. What is the primary goal of Ciudad Morazán and similar Free Cities?

To create an environment with strong property rights, low regulations, and efficient governance that fosters entrepreneurship, investment, and economic development.

4. How does the governance structure of Ciudad Morazán operate?

Ciudad Morazán is governed by an appointed technical secretary who oversees administration, regulations, and dispute resolution under the ZEDE framework, allowing for a streamlined, business-friendly system.

5. What legal and economic benefits do residents and businesses gain by operating within a ZEDE?

Benefits include reliable security and infrastructure, simplified business registration, low taxes, minimal bureaucracy, and private arbitration for disputes.

6. How are public services (like education and healthcare) managed in Ciudad Morazán?

Services are privately managed, meaning providers compete to offer quality education and healthcare solutions tailored to residents' and businesses' needs.

7. What kind of investment opportunities are available within Ciudad Morazán?

Investors can participate in businesses, like manufacturing, logistics, and technology ventures within a secure, low-tax environment.

8. How do ZEDEs ensure compliance with human rights and international law?

ZEDEs are legally required to uphold international human rights standards and the rule of law, with independent oversight mechanisms in place.

9. What are the main criticisms or concerns associated with ZEDEs and Free Cities?

Critics argue ZEDEs bypass national sovereignty, could exploit workers, or favor foreign investors, although the charters of the existing ZEDEs have provisions preventing any of those outcomes. Supporters counter that they offer economic opportunities and legal stability.

10. How does the local population of Honduras view the establishment of ZEDEs?

Opinions vary—some see ZEDEs as a path to economic growth, while others view them with skepticism due to political narratives and misconceptions.

11. What measures are in place to prevent corruption and ensure transparency within Ciudad Morazán?

Independent governance, clear contracts, private arbitration, and digital transparency measures help minimize corruption risks.

12. How are disputes and conflicts resolved within the governance framework of Ciudad Morazán?

Disputes are handled through private arbitration courts, ensuring fair, efficient, and depoliticized conflict resolution.

13. What kind of infrastructure is available in Ciudad Morazán (transportation, utilities, etc.)?

The city has roads, sidewalks, water supply and treatment, electricity, internet, security services, and waste management, with ongoing infrastructure expansion.

14. Can anyone move to and live in Ciudad Morazán, or are there specific requirements?

Generally, anyone can live in Ciudad Morazán, provided they follow residency agreements and community guidelines.

15. What impact do ZEDEs have on the national economy of Honduras?

ZEDEs attract investment, create jobs, and generate tax revenue, though their full economic impact is still developing.

16. How does the environmental regulation within Ciudad Morazán compare to the rest of Honduras?

Regulations focus on sustainability and private accountability, often enforcing higher environmental standards than national laws.

17. What is the role of the Honduran government in the establishment and oversight of ZEDEs?

The government grants ZEDEs autonomy but retains limited oversight through constitutional provisions.

18. How does the Morazan model address issues of social inequality and poverty?

By creating jobs, lowering living costs, and offering an environment where businesses thrive, which benefits workers and entrepreneurs alike.

19. What is the historical context behind the creation of ZEDEs in Honduras?

ZEDEs were established under a 2013 constitutional amendment, inspired by successful special economic zones worldwide.

20. What is the relationship with the government?

ZEDEs operate with a degree of autonomy but remain part of Honduras. The national government retains limited oversight, mainly concerning constitutional compliance and foreign relations.

21. Is there a way to mediate disputes between local governments and a Free City government?

Disputes between ZEDEs and local governments can be resolved through arbitration mechanisms or negotiations, ensuring cooperation and minimizing conflicts.

22. How do we enforce contracts in civil disputes?

Contracts are enforced through private arbitration courts, offering faster and more predictable outcomes than traditional government-run courts.

23. How do we navigate criminal liabilities when they occur within a charter city?

Serious criminal cases are typically handled by Honduran national authorities, but Ciudad Morazán has its own internal security and regulatory systems for maintaining order.

24. What is the position on immigration policy, and does such national policy apply to a subnational entity like a charter city?

ZEDEs have the authority to set their own residency and work permit policies, though Honduran national immigration laws still apply at international borders.

25. Do sanctions against specific countries at a national level extend to a charter city location?

Yes, since ZEDEs are still part of Honduras, any national-level sanctions imposed on specific countries or entities would apply within Ciudad Morazán.

26. How do the court/arbitration systems work?

Disputes are resolved through private arbitration courts, where both parties agree to a neutral arbitrator instead of going through a national judicial system.

27. What are the relevant background checks conducted by the zones for applicants? Where does this data go?

Background checks, if required, focus on criminal history and financial integrity. Data is typically kept private and used solely for residency or business approvals.

28. How will the zone collaborate with national and international authorities upon data-sharing requests?

Collaboration depends on legal agreements, privacy policies, and international regulations. The ZEDE framework generally prioritizes individual and business privacy.

29. How have the zones demonstrated growth bolstering for participants (natural and legal persons)?

ZEDEs, including Ciudad Morazán, have attracted entrepreneurs by providing legal stability, low taxation, and business-friendly regulations. Growth is seen in increased investment, new businesses, and job creation.

This FAQ aims to clarify common questions about Ciudad Morazán and the ZEDE framework. For more details, visit morazan.city.