Honduras's National Congress overwhelmingly approved a bold solution to confront the institutional instability, corruption, and violence that have undermined the protection of basic human rights. The solution, originally inspired by Nobel-Prize-winning economist Paul Romer's charter cities concept, was to form new, independent governing institutions for designated zones of the country, established by popular consent and international best practices for governance. Thus were born the Zonas de Empleo y Desarrollo Economico (Zones of Employment and Economic Development or ZEDEs). Established by constitutional amendment and organic law, the ZEDEs are intended to adopt new public management models operating with a high degree of autonomy, yet without renouncing Honduran sovereignty. Given their novelty and their troubled emergence against a backdrop of institutional failure, the ZEDEs have encountered understandable skepticism, confusion, and criticism. The main concerns have been that the ZEDEs do not protect individual rights and instead expose the Honduran people to abuse and exploitation by foreign companies. Many authors also assert that the ZEDEs undermine Honduran sovereignty. As strong supporters of human rights and institutional accountability, the authors take these concerns seriously. Both are engaged in a multi-year effort to analyze and strengthen the ZEDE legal regime, including its human rights protections. This paper is a product of those efforts. This paper addresses the question of whether the ZEDEs are consistent with Honduran sovereignty and human rights by way of constructing a general rule for ZEDE autonomy that defines the scope of what a ZEDE can legally do. This construction is made by applying principles of statutory construction accepted both internationally and in Honduras to the laws establishing the ZEDEs. This general rule establishes respect for sovereignty and human rights as limitations or outer bounds on ZEDE autonomy, thereby forcing ZEDEs to not transgress these core principles. Thus, while the general rule for ZEDE autonomy allows the ZEDEs wide latitude to develop new laws and administrations, it also ensures consistency with human rights norms and Honduran sovereignty. Moreover, it helps position the ZEDEs to greatly improve the status of human rights and institutional strength in Honduras. This paper begins by highlighting the major challenges facing Honduras today. It then analyses the laws creating the ZEDEs to formulate the general rule of ZEDE autonomy. It then details the human rights safeguards that ZEDEs must comply with and, finally, the relationship between ZEDE autonomy and Honduran sovereignty. As a result, the paper clarifies the ZEDE’s legal obligations regarding human rights and national sovereignty, thus helping define the scope of ZEDE autonomy.
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