In an age where inequality continues to skyrocket and democracy faces its most existential crisis in decades, we’re witnessing a chilling shift. The global wealth gap is widening, with the richest 1% now owning 43% of the world’s wealth according to the Credit Suisse Global Wealth Report 2023. It’s a world where the ultra-wealthy and powerful are deliberately trying to bypass democratic institutions to create spaces where capitalism can run rampant, free from oversight, regulation, and accountability. This isn’t some dystopian fantasy—it’s happening right now. And it’s time to sound the alarm.

The Market’s Last Stand

Around the world, we’re seeing the rise of “free-market” enclaves—areas where the rules of democracy and governance are stripped away in favour of private interests. These zones are designed to operate outside the reach of national laws, labour protections, and environmental regulations, creating spaces where corporations and the rich can thrive, often at the expense of the rest of society. It’s a world where, for the wealthy few, the public good is of no concern, and democracy is a barrier to profits.

In China, massive Special Economic Zones (SEZs) like those in Shenzhen have become hotbeds of unchecked capitalism. While they’ve helped to fuel China’s economic boom, they’ve also provided a perfect example of how capitalist interests can operate in a state of relative lawlessness, where labour rights and environmental standards are often ignored in the pursuit of profit. A report by the Institute for Labour Rights found that workers in some Chinese SEZs face excessive overtime, unsafe working conditions, and suppression of independent unions. These zones are marketed as engines of growth, but in reality, they frequently exploit workers and leave local communities on the outside looking in. It is important to note that not all SEZs are the same. Some have been implemented with stronger labour and environmental protections, demonstrating the potential for more balanced outcomes when regulations are prioritised. However, the dominant trend, particularly in the early stages of SEZ development, has been a race to the bottom on labour and environmental standards.

Across the globe, in places like Dubai, the creation of corporate zones where multinational corporations and ultra-wealthy individuals operate with minimal regulations is becoming more common. These zones operate largely outside the laws of the host country, with tax-free incentives, and limited labour rights, creating economic havens that are unaccountable to the needs or rights of the broader population. Workers from all over the world are lured by the promise of economic opportunity, only to find themselves subjected to exploitative conditions with no recourse for justice.

Then there’s seasteading—a movement championed by Silicon Valley billionaires like Peter Thiel. The idea is to build floating, self-governing cities on international waters, entirely detached from the laws of any nation-state. These “utopian” cities would be free from taxes, social welfare programmes, and environmental regulations, and governed by private corporations. Thiel himself has stated, “Seasteading is a way to escape from politics,” highlighting the movement’s desire to circumvent democratic processes. The goal is a society in which the market, rather than democratic institutions, reigns supreme.

The Neoliberal Fantasy

What links all these ventures is a deep-seated ideology: the belief that democracy gets in the way of economic freedom. It’s an idea championed by thinkers like Friedrich Hayek and Milton Friedman, who feared that democracy—by giving power to the people—would inevitably lead to policies that redistribute wealth and regulate business practices. For these ideologues, the state is seen as a hindrance to the free market, not a necessary check on corporate power.

Proponents of these “free-market” zones often argue that they stimulate economic growth and create jobs. While it’s true that some SEZs have contributed to increased economic activity, the benefits are often unevenly distributed, with wealth concentrated in the hands of a few while many workers face low wages and poor working conditions. A study by the World Bank found that while SEZs can contribute to economic growth, their success depends heavily on factors like good governance, strong institutions, and effective integration with the local economy.

Furthermore, some advocates, particularly proponents of charter cities and seasteading, view these zones as laboratories for innovation and experimentation with new forms of governance. They argue that existing political systems are often inefficient and unresponsive, and that creating new, self-governing communities can lead to better outcomes. While experimentation can be valuable, it should not come at the expense of fundamental human rights, labour protections, and environmental sustainability. History has repeatedly shown that unchecked private power often leads to exploitation and inequality.

This view is not just academic—it’s being implemented in the real world, and it has consequences. The goal is not just to lower taxes or remove a few regulations—it’s about creating zones where the rules that govern the rest of us simply do not apply. Where democracy is replaced by corporate rule. Where decisions are made not by elected officials or public institutions, but by the wealthiest individuals and the companies they control.

The War on Democracy

At the heart of this project is an attempt to undermine democracy itself. The argument for “free-market” enclaves is that they’re more efficient, more productive, and better for economic growth. But the real motivation is much more sinister: it’s the desire to create spaces where private interests can thrive without any of the public accountability that democracy requires.

In these spaces, workers have few, if any, protections. They’re subject to the whims of their employers, who are free to impose gruelling working conditions and exploit their labour. Public goods like healthcare, education, and infrastructure are privatised and only available to those who can afford them. The rich, insulated by their own private zones, can live in a bubble where they are free from the challenges of the world around them. For the rest of us? We’re left behind.

The fact that this is happening in countries like China, the United Arab Emirates, and even in the idea of creating “charter cities” in the Global South shows just how far-reaching the impact is. These zones are often pitched as solutions to poverty and underdevelopment, but they’re nothing more than modern-day colonisation. They’re designed to benefit the wealthy, while those in poverty are left to suffer in exploitative conditions.

The Global South: A Testing Ground for Exploitation

Perhaps most concerning is the way these neoliberal experiments are being tested in the Global South. Countries like Honduras, where proponents of charter cities have tried to create zones immune from national laws, offer a disturbing glimpse of what’s to come. Paul Romer, a prominent economist and advocate for charter cities, initially promoted the idea in Honduras, arguing that it could help lift the country out of poverty. However, the project faced strong opposition from local communities and civil society organisations, who feared it would undermine national sovereignty and exacerbate existing inequalities. The idea behind these zones is to attract foreign investment by offering tax breaks and regulatory freedoms, often in exchange for cheap labour and lax labour laws.

But this is not a new idea—it’s a reimagining of colonial exploitation, where foreign corporations control the land and the labour, and the local population is left without the political power to demand better conditions. It’s a system that prioritises the needs of the global elite over the rights of ordinary people.

A Call to Action

This is where we stand today: a world where democracy is being hollowed out by those who would rather rule over us than be held accountable. But it’s not too late to stop it. We cannot sit idly by while the rich and powerful build their private fiefdoms and leave the rest of us to fend for ourselves.

We must fight back.

We need to reclaim our democracy. We need to demand that our governments take control of our economies, that they enforce regulations that protect workers, that they create policies that address the needs of the many, not the few. We need to challenge the rise of special economic zones and charter cities that seek to bypass democratic control, and instead build a future where public institutions are accountable to the people.

Here’s how we can act:

• Strengthen International Labour Standards: Advocate for stronger international labour standards and enforcement mechanisms to prevent a race to the bottom in working conditions. Organisations like the International Labour Organization (ILO) play a crucial role in this effort.
• Promote Corporate Accountability: Support policies that require corporations to disclose their activities in SEZs and other “free-market” zones, including their tax payments, labour practices, and environmental impact.
• Regulate Tax Havens: Advocate for stricter regulations on tax havens and other mechanisms that allow corporations and wealthy individuals to avoid paying their fair share of taxes. The Tax Justice Network is a leading organisation working on this issue.
• Support Grassroots Organisations: Organisations like Labour Notes, the Asia Floor Wage Alliance, and the Clean Clothes Campaign are fighting for workers’ rights and corporate accountability around the world. Supporting these organisations through donations or volunteering can make a real difference.
• Engage in Political Action: Contact your elected officials and demand that they oppose the creation of new “free-market” enclaves that undermine democracy and workers’ rights. Participate in protests and other forms of collective action to make your voice heard. Write to your MP, join a protest, support organisations fighting for workers’ rights – every action counts.
• Educate Yourself and Others: Learn more about the dangers of unchecked corporate power and the importance of democratic governance. Share this information with your friends, family, and community.

The time to act is now. The world is being reshaped by those who wish to concentrate power in the hands of the few. But we have the power to change it. We need to build a world where democracy is not a distant dream, but a vibrant, living reality. A world where the wealth created by society is shared, where the powerful are held accountable, and where everyone has a voice in shaping the future.

We can’t afford to wait. The stakes are too high. Let’s rise together, resist this market-driven assault on our democracy, and build a future that works for all of us—not just the billionaires and the corporations.