Government-as-a-Service
Private Cities and GOVaaS: Anarcho-Capitalism's Ultimate Playground?
Welcome to the future: where governments don’t govern you, they serve you. In the realm of anarcho-capitalism, this isn’t a utopian fantasy but a very real experiment in the form of Private Cities, an ambitious take on how society could function without traditional government. Instead of being born into a country with a predetermined set of rules and systems, you’d choose a city that functions like a business, where government is a service provider, not a ruler. If you’re dissatisfied, you simply unsubscribe and leave—just like you’d drop Netflix.
The term floating around for this model? Government-as-a-Service (GOVaaS), and one of the most radical examples of this concept in action is Próspera, a libertarian-style city in Honduras.
The Anarcho-Capitalist Vision: Private Cities
Anarcho-capitalism advocates for a society without the traditional state, where free markets and voluntary interactions rule the day. Under this system, even the functions of government—security, infrastructure, legal systems—are privatized. This is where Private Cities come into play. Instead of relying on a coercive state to provide services, private companies or entities offer these services to residents in exchange for a fee.
In a Private City, you aren’t bound by arbitrary borders or laws imposed by a distant government you had no hand in creating. Instead, you sign a contract when you enter, agreeing to the rules and services that the city provides. It’s government as a subscription model. If you don’t like how the city is run or believe you're not getting your money’s worth, you can move to another city that better suits your preferences—no revolutions needed, just a moving truck.
The key principle of anarcho-capitalism is that everything is a market, including governance. So, competition between cities will (in theory) push them to be more efficient, cost-effective, and pleasant places to live, much like businesses compete for customers.
GOVaaS: How Does It Work?
Think of GOVaaS like a SaaS (Software-as-a-Service) model but for governance. In a GOVaaS framework, the city's administration is run by a private company. This company manages everything from infrastructure and security to education and waste disposal. Residents pay a subscription fee, in the form of taxes or service charges, in exchange for these services.
Rather than having bureaucracies and politicians deciding how a city should be run, the city is operated like a business. There’s a contract-based relationship between the residents and the governing body. If the city management fails to deliver on its promises, residents can sue or terminate their contracts.
This flips the traditional model of government on its head, where you’re born into a country and its laws, and changing governments requires massive political shifts or elections. In a Private City, government is simply a service provider, and you're the customer.
Próspera: The Libertarian Utopia in Honduras
Anarcho-capitalism's dream of Private Cities is no longer just theoretical. Próspera, a libertarian city founded by Próspera Inc. in Honduras, is a real-world experiment in GOVaaS. The city operates within the framework of ZEDEs (Zones for Employment and Economic Development), which are semi-autonomous zones established by the Honduran government to attract foreign investment and innovation.
Próspera is essentially a start-up city, governed not by a traditional government but by private law. Its founders aim to build a city for entrepreneurs and investors, with low taxes, minimal regulation, and high economic freedom. Unlike the rest of Honduras, Próspera operates with a completely different legal framework, giving it the flexibility to innovate and experiment with its governance model.
How Próspera Operates:
- Private Law: Próspera runs on its own set of laws and legal systems, separate from Honduran law. Contracts are the foundation of social interaction here—citizens agree to the rules upon entry.
- Subscription Model: Residents pay for the services they receive. Taxes are minimized or replaced with service fees for governance, infrastructure, and even private arbitration courts. The idea is that you pay for exactly what you use, not for a bloated bureaucracy.
- Business-Oriented: The city is designed to attract entrepreneurs, investors, and businesses that thrive in a low-regulation, low-tax environment. Companies and residents are attracted by the promise of minimal government interference and maximum personal and economic freedom.
- Accountability: In Próspera, if the governing company (Próspera Inc.) doesn’t deliver on its services, residents have the legal right to sue for breach of contract. The idea is that, unlike traditional governments, the city’s administration is directly accountable to the people it serves.
The Drawbacks and Criticisms
As shiny and innovative as Private Cities and GOVaaS might sound, there are some major criticisms:
- Socioeconomic Stratification: With services being paid for à la carte, there’s a risk that only the wealthy can afford quality governance, while the less fortunate are left with subpar services. It’s capitalism on steroids, where the rich thrive and the poor barely survive.
- Lack of Democratic Oversight: In Private Cities like Próspera, decisions aren’t made by elected officials. Instead, they’re made by private companies. If you don’t like how things are run, your only option is to leave or sue. This leads to concerns about corporate overreach and the erosion of democratic processes.
- Not Truly "Anarchic": While these cities may operate without a traditional government, they still have rules and laws—you just agree to them upfront. In practice, they may look more like corporate-run fiefdoms than true anarcho-capitalist utopias.
- Limited Appeal: GOVaaS models might appeal to entrepreneurs and wealthy expats, but for everyday people, moving to a city run by a private company might seem risky. Without social safety nets and democratic institutions, Private Cities might not be the catch-all solution they promise to be.
Is This the Future of Governance?
Private Cities and GOVaaS are experiments that challenge the traditional role of the state. In an increasingly globalized world, where businesses operate across borders and people demand more personal freedom, these models offer an intriguing alternative to the bloated bureaucracies many people find themselves dissatisfied with.
But the question remains: will these cities deliver on their promise of freedom and efficiency, or will they become corporate dystopias where the wealthy rule and everyone else is left behind?
For now, places like Próspera are leading the charge into this brave new world of governance. Whether this model succeeds or not may well determine the future of how we think about government, citizenship, and society itself.
