Trump Pardons Convicted Honduran Drug Trafficker, Backing 'Próspera' Libertarian Enclave

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In a controversial move, former U.S. President Donald Trump pardoned Juan Orlando Hernández, the former President of Honduras and a convicted drug trafficker. Hernández had helped facilitate the importation of 400 tons of cocaine to the U.S. Meanwhile, Hernández championed Honduras's 'Zones for Employment and Economic Development' (ZEDEs), allowing Silicon Valley moguls to experiment with the creation of the libertarian enclave called 'Próspera' on the Honduran island of Roatán. Próspera, backed by Trump advisors and the 'PayPal Mafia', is being promoted as a model for 'network states' and unregulated medical experimentation.

Why it matters

This case highlights the growing influence of libertarian 'network state' ideologies, backed by wealthy tech elites, that seek to circumvent national sovereignty and democratic oversight through the establishment of charter cities and special economic zones. Próspera represents an attempt to create a largely autonomous, lightly regulated territory that can serve as a hub for businesses and residents seeking to avoid taxes and government regulations, including in sensitive areas like medical experimentation.

The details

Próspera was conceived after the 2009 coup in Honduras that brought the Hernández National Party to power. It was formally applied for as a charter city in 2017, using companies with names like Brimont Holding and North Shore Development Company to purchase land on the island of Roatán. Próspera is registered in the U.S. state of Delaware and its investors are hidden behind opaque offshore accounts in the Cayman Islands. The city offers a low-tax model, with a 1% business income tax, 5% personal income tax, and 1% land value tax, as well as the ability for businesses to choose from 37 different regulatory frameworks. Próspera has also embraced cryptocurrency, with all transactions processed in Bitcoin.

• In 2013, the Próspera project was approved by Honduras's Supreme Court.
• In 2017, the founders of Próspera formally applied for a charter city in Honduras.
• In 2021, construction began on the Próspera project.
• In 2022, Hernández was arrested and extradited to the U.S. for narcoterrorism.
• In 2022, the Honduran Congress voted unanimously to repeal ZEDEs, though international treaties protect Próspera for at least 50 years.

What they’re saying

What’s next

The Honduran government's efforts to repeal ZEDEs and dissolve Próspera are likely to face significant legal challenges, as the project is protected by international treaties for at least 50 years. The future of Próspera and similar 'network state' experiments will continue to be a subject of intense debate and controversy.