About Rod D. Martin
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by Richard Rahn
December 2, 2015
Tegucigalpa, Honduras. Why has Honduras lagged behind its neighbors and much of the rest of the world?
It is resource-rich, has deep-water ports both on the Caribbean Sea and the Pacific Ocean, is very scenic and, because of its mountain terrain, has sub-climates that meet most people’s preferences.
As can be seen in this table, Honduras compares poorly with neighboring countries and some other countries of similar size. Guatemala next door has a per capita income roughly 50 percent higher, Costa Rica three times higher, Chile five times higher, and Switzerland and Hong Kong about 12 times higher than Honduras’.
Honduras lags and suffers because of the lack of the rule of law and economic freedom.
Honduras is, unfortunately, well-known for having the highest murder rate in the world. In cities such as San Pedro Sula, drug gangs engage in open warfare on each other.
The relatively good news is that the violence is seldom directed against tourists, legitimate business people and professionals, even though property crime is high.
The genuinely good news is that Honduras has a relatively small government, comparatively low taxes, and manageable government debt. It has free-trade agreements with 40 countries, accounting for about 1.5 billion people, so it is an attractive location for many export-oriented businesses. The financial sector and monetary system are both reasonably stable and well-managed.
The regulatory system is uncertain with too many corrupt bureaucrats and judges. There is extensive underemployment in part due to the corruption and counterproductive labor laws and regulations.
Despite its problems, the ills that plague Honduras are known and fixable.
Former New York Mayor Rudolph Giuliani demonstrated that crime and murder rates can be quickly brought down with smart policing and a determined political leadership. (New York City has approximately the same population as Honduras.)
Honduras should move to “e-government” as Estonia did a couple of decades ago under the leadership of Prime Minister Mart Laar to quickly get rid of much of the corruption.
Corrupt and incompetent judges need to be fired, and even be temporarily replaced with some respected foreign judges as some countries have done.
Former Chilean mining and labor minister, Jose Piñera, was the architect of the reform of Chile’s social security system and subsurface property rights regime, which were key ingredients in Chile’s rush from a poor to a developed country. Honduras ought to adopt much of the Chilean model.
Honduran President Juan Orlando Hernandez, his predecessor and the Honduran Congress have supported the creation of free zones within Honduras as demonstration projects to show the benefits of free markets and the rule of law in creating well-paying jobs and economic growth.
The first of these zones will be operational within the next couple of months. They are known as ZEDEs, meaning Zone for Employment and Economic Development. [EDITOR’S NOTE: See Rod’s article from 2013 on the wonder that is ZEDE.)
The approval and operational rules of each ZEDE are provided by an international committee known as CAMP (Committee of Best Practices). In order to provide international credibility and independence, the majority of the CAMP members (of which I am one) are non-Hondurans, drawn from nine countries.
An American ex-pat and free-market political evangelist, Mark Klugmann, Honduran lawyer and former government official Octavio Sanchez, Executive Secretary of the Cabinet Ebal Diaz, and former President Ricardo Maduro were instrumental in the design and selling of the ZEDE concept.
The ZEDEs will be able to create their own infrastructure — plus fire, police, medical facilities and civil court system (using the British common law system rather than the Honduran administrative law system if they so choose). The ZEDEs can also allow choice in currency.
In essence, each ZEDE will operate as a free city — devising most of its own rules, regulations and structure to make it economically attractive to foreign investors. If they work as envisioned, they will be major employment generators and free of corruption, and thus serve as a role model for the rest of Honduras.
There are many recent examples of countries — and relatively free economic enclaves around the world — achieving very high economic growth rates for a sustained period of time. There is no reason why Honduras cannot make the necessary changes to become a high-growth country, with the doubling of real incomes every decade or so, quickly becoming a developed (and safe) country.
The Honduran ZEDE experiment is a part of the attempt to not only catch up with its neighbors but to surpass them.
— Saving Honduras with Capitalism was originally published at To The Point News.
Rod is one of our nation’s leading minds. He’s smart, original, and very committed—a combination that one rarely finds.
Rod Martin and [former Howard Dean campaign manager] Joe Trippi are America’s two foremost experts on online politics.
Rod Martin is a Reaganite-Thatcherite conservative…[and] a man who has spent much of his life ministering to and working for the benefit of others. I know Rod as an advocate for freedom, a leader who understands the real changes we need in Washington, and who has the drive and ability to make those changes happen.
Rod Martin is the kind of dynamic leader who has the knowledge, ability and experience to lead us successfully into the 21st Century. His vision for America is compelling.
Rod Martin literally wrote the book on excellence. Humble yet brilliant, a man of love and compassion, with penetrating clarity he illuminates the world around us, and we are both stirred and enlightened.
Rod Martin is a born leader and an outstanding political mind. Anyone who takes him on is going to have a serious fight on their hands.
Rod Martin is a man of uncommon vision and character. Ever since I first worked alongside Rod in the early days of PayPal, I’ve been struck by his powerful vision for the future. Rod understands the intersection of technology, politics and culture in a way that few others do.
Rod Martin wears with uncommon grace an uncanny ability to link his vigorous faith to the practical challenges of both the business world and the political arena. Yet the respect he shows for others carries a warmth and modesty that are both too rare among those who are strong advocates of feisty positions.
America badly needs more leaders who really get the future. We need more Rod Martins.
Rod Martin is a modern day philosopher-statesman. He is a capitalist intellectual, a conservative iconoclast, a gentle adversary and a kind prophet. He inspires us towards a fresh national vision built upon the original founding principles.
Rod Martin is not only effective and efficient, but he is also perceptive, wise and gracious. He gets things done. He is a great friend and a great ally.
Rod is one of the sharpest, most gracious men I know, and one of the most gifted political thinkers today. His ability to analyze issues and communicate thoughtful insights on them have earned him the respect of people across the political spectrum.
I am proud to have been Rod Martin’s friend for a quarter century, and I can tell you that he is one of the finest men and most outstanding leaders in our church and in our country today. He has a knack for turning everything he touches to success.
Rod Martin is a cornucopian entrepreneur and eutropic thinker whose influence radiates through an array of companies, institutions, movements and churches. A renaissance American, he is also a prolific friend of freedom and faith around the globe.
If Rod Martin represents the next generation of leaders, America has nothing to worry about.
A leader and a servant, in public life and in private, Rod Martin strides at the top of his profession, and has nowhere to go but up. He is in the truest sense of the word ‘outstanding’.
Rod Martin is undoubtedly one of the most accomplished thought leaders today. He is a wonderful mentor, a humble role model, and a deep inspiration for the next generation of scientific innovators and entrepreneurs.
Rod’s achievements pale beside his character and his brilliance. He sees what others can’t. He leads when others won’t.
Rod Martin is one of America’s finest young minds.
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