Guantanamo Bay is a large bay and fertile delta on the south-eastern tip of the island of Cuba surrounded by high mountains. The territory is controlled completely by the US since 1903 and is roughly the size of San Francisco—about 45 square miles. Until now it has been reserved for naval and military operations including the infamous Guantanamo Bay Detention Center.

The Plan: 99 Year Lease

Here’s the plan. Following the Hong Kong model, America should setup a 99 year lease with Cuba for the Guantanamo Bay territory. In 99 years the bay will go back to Cuba, during those 99 years, American law will rule the area. The US government will build infrastructure and manage a controlled migration of Cuban and American citizens and companies into the region.

6 years ago Paul Romer suggested that “Charter Cities” could be chartered and built to accelerate economic growth across the world. (Scroll to the bottom to view his TED talk on the topic). The economy depends, Romer said, on good rules and recipes, not just natural resources. Charter Cities can provide the good rules. Hong Kong and Singapore are good models for charter cities, but they were created by colonists. What would a new city chartered today in Guantanamo look like?

Pros

End American Colonialism—Guantanamo is a colony of the US, that the US holds by military might and threat of violence. This plan would give everyone incentives to sunset this colony. Relationship With Cuba — Cuba considers American rule of the area illegal, so setting up some timeline ought to be good. Cuba’s Transition to Free Market—Transitioning from a communist to a free market society is hard and dangerous. A charter city in Guantanamo Bay will serve as a touchstone and bellweather for Cuban market activity. American and Cuban Economy—This new area represents an enormous growth opportunity for both the American and Cuban economy. Cuban Poverty—Cuba is largely in poverty and many Cubans would like to emigrate to get more opportunity. “Emigrating” to Guantanamo Bay will be a sort of release valve for poor Cubans who can then remit money back to Cuba.

Cons

“Neo-Colonialism”—Global Political commentators have already expressed their unease with Charter Cities. For all its benefits, it just looks too much like a new form of colonialism. “Neo-Castros”—Populist Cuban nationalists will no doubt be against the city citing it as American colonialism and demand the immediate return of Guantanamo Bay to Cuba.

Any plan to put a Charter City in Guantanamo needs to be part of an overarching plan to give Guantanamo back to Cuba and underscore the slow and safe economic improvements such a city could cause for the rest of the island.

Here is Paul Romer’s TED talk on Charter cities: