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12:01 AM 17th January 2025
business

Economist Urges UK To Create Free Cities

Image by Dave Y Kialoa from Pixabay
Image by Dave Y Kialoa from Pixabay
The UK should embrace a bold new economic strategy by creating self-governing cities akin to Hong Kong, according to a report by Vera Kichanova, Senior Economist at the Free Cities Foundation, published by the Institute of Economic Affairs. These cities, she argues, could drive unprecedented growth and prosperity, positioning Britain as a global leader in urban innovation.

Kichanova critiques the UK's freeports policy, describing it as a short-term political tool that adds bureaucracy instead of fostering economic freedom. She highlights how next-generation special jurisdictions—such as private cities and special economic zones (SEZs)—are succeeding globally by embracing self-governance, private sector leadership, and mixed-use urban strategies.

“There’s no need to reinvent the wheel — these strategies have already delivered spectacular results elsewhere,” says Kichanova. “The UK has the potential to create its own Hong Kong — perhaps even multiple ones — within its borders.”

Drawing on international examples as widespread as Honduras and South Korea, Kichanova’s report underscores how new private and self-governing cities, special economic zones (SEZs) and special administrative regions (SARs) have had huge success in delivering prosperity to their people and the areas in which they are situated.

Closer to home, the report points to the City of London, Canary Wharf, and historical industrial communities like Bournville as early examples of economically transformative zones.

In addition to the direct economic benefits, self-governing cities in the UK could create liveable communities and would unlock opportunities for more regulatory innovation on a local scale, allowing experimentation with policies in contentious areas such as planning. Successes could then be replicated nationwide with a strong evidence base.

“By leveraging our rich urban heritage, we can develop zones of exceptional economic growth and innovation right here at home,” Kichanova adds.

This is one of those proposals which may sound very radical at first, but it is really just a consistent application of the principles of decentralisation, local self-governance, market-like competition between political jurisdictions, and experimentation with different models of governance. We hope that readers who are interested in these ideas will find value in this paper, even if they do not wish to go quite so far as the author.
Editorial Director at the Institute of Economic Affairs Kristian Niemietz.


Vera Kichanova's groundbreaking policy paper on 'Hong Kong-style' self-governing regions is a bold and visionary blueprint for the UK's urban future. As an expert in urban development, Kichanova masterfully highlights how freedom and autonomy can unleash innovation, tackle persistent challenges like the housing crisis, and position Britain as a global leader in urban self-governance. With compelling examples from history and contemporary successes, her proposal offers an inspiring roadmap to transform the UK's cities into thriving, competitive hubs of prosperity.
Patrik Schumacher, Principal of Zaha Hadid Architects


Vera Kichanova shows in a convincing manner that the UK has missed a chance when designing the Freeports according to a model known since the 1960s. Globally, there are already several thousand competitors with a similar offer. May this excellent article serve as an impetus to reconsider the matter. The UK still has a chance to leapfrog competing special economic zones and create unique economic powerhouses on its own soils.
Titus Gebel, Founder and President of the Free Cities Foundation