1. Isn’t this for the rich only?
Free Private Cities are not intended as a retreat for the rich. Rather, they should develop along the lines of Hong Kong from poor beginnings to ultra-modern cities of the 21st century.
There are various possibilities for new residents who are willing to work but unable to pay.For example they could be granted a deferral of their payment obligations or employers seeking a workforce could agree to sponsor them for an agreed period of time.
2. Are Free Private Cities open to everybody?
In principle yes, as long as potential entrants are willing to accept the rules of the city.
However, applicants who openly declare views that are not compatible with a free society, e.g. socialists, fascists or islamists, won’t be granted admittance.
Ex-dictators, internationally wanted criminals, mafia bosses and the like are just as undesirable. In practice, there might be some additional restrictions imposed by the parent state, depending on the agreement reached.
3. Isn’t the operator a kind of dictator?
Not any more than any owner of a cruise ship company, a hotel or an insurance company, while you make use of their services. All have a certain power but are bound by agreements with you – and so is the operator.
This contract at arm’s length and the possibility to legally arbitrate it are efficient and effective tools for gaining redress of grievances in the hands of residents.
However, it is, in the end, competition and the possibility to easily exit this small place, which would guarantee that the operator remains a service provider who sticks to his own rules, instead of becoming a dictator who ignores arbitration or otherwise abuses his power. In such a case, his customers would leave and he would become insolvent.
4. How is social security achieved?
Because this issue is so important to many people, there will be offers and ideas addressing it.
There are numerous historical and current examples of how social security can work successfully without coercion, namely through collective self-help organizations. Such things would automatically develop in a Free Private City.
5. How can the operator make money?
The basic idea is that every resident pays a fee for the operator’s services.
If the operator made his investment assuming that 100,000 residents came and and 200,000 ended up coming, he would make a profit because police, justice and infrastructure would not have to be doubled to provide the same level of service.
In addition, there might be some modest taxes, like land value tax or property transaction tax or income from real estate development, which could help make the Free Private City profitable and keep the payment obligations for the residents as low as possible.
6. What if the mother country or someone else tries to capture the Free Private City?
There is no magic formula. The operator and the residents will have to hold back the aggressor by a combination of means, such as making international public, diplomatic contacts with other states and perhaps even some armed defensive ability, which would impose a sufficiently high price on the aggressor, possibly associated with civil resistance.
In addition, in a Free Private City the residents are highly mobile and therefore, following an occupation, the city would probably no longer prosper. This can be communicated in advance, making the potential aggressor think twice about taking any action that would ruin the very city he seeks to exploit.