Could the next unicorns be private cities? A primer on a 120,000-resident, $5 billion GDP private city experiment in China, plus valuation models on network states.
Awesome to see classic valuation methodologies applied to Network States. What revenue models do you see most likely for Network States? What value should taxes capture? Especially when thinking about pre-real estate NS?
Angelo, thanks so much! And great seeing you in the Middle East :) Personally, I think Subscription + Real Estate (appreciation, rent, and LVT) will be most significant. The trick is sequencing value so that citizens feel enough pull to start paying near Day 1. That is much harder.
Really interesting piece Zane. The idea of overstretched Western governments having the grace and humility to delegate more of their current responsibilities in this way is tantalising, but feels unlikely in the near future. It’s striking that even as the idea of a private city remains outside the Overton window in most Western countries, China has actually already gone ahead and done it. We can’t even get to theory and they’re already learning-by-doing.
That said - I’ve not been able to find much English-language information about Jiaolong or its founder Huang Yujiao. Where exactly is Jiaolong?
My thought is it just takes one. When we get one, we will get a hundred. It just takes one Miami (forward thinking), or Detroit (nothing to lose), or West Virginia (also nothing to lose) to get the first.
Will they open or be forced to?
It is simultaneously deeply humbling and motivating that a country that identifies as communist has beat us to the punch on capitalist city innovation; then again, they have many decades of experience with SEZs, so it is only natural.
Re: where Jiaolong is,
I believe the address is here: Jiaolong Industrial Port China, Sichuan, Chengdu, Shuangliu, Gaoxin Blvd, 11号-A座 邮政编码: 610240
It should be located in Shuangliu County. If you visit, take pictures ✌️
Very interesting!
Thank you Professor! Your paper set everything in motion for me.
Awesome to see classic valuation methodologies applied to Network States. What revenue models do you see most likely for Network States? What value should taxes capture? Especially when thinking about pre-real estate NS?
Angelo, thanks so much! And great seeing you in the Middle East :) Personally, I think Subscription + Real Estate (appreciation, rent, and LVT) will be most significant. The trick is sequencing value so that citizens feel enough pull to start paying near Day 1. That is much harder.
Really interesting piece Zane. The idea of overstretched Western governments having the grace and humility to delegate more of their current responsibilities in this way is tantalising, but feels unlikely in the near future. It’s striking that even as the idea of a private city remains outside the Overton window in most Western countries, China has actually already gone ahead and done it. We can’t even get to theory and they’re already learning-by-doing.
That said - I’ve not been able to find much English-language information about Jiaolong or its founder Huang Yujiao. Where exactly is Jiaolong?
Thanks, Mark!
Re: Western governments,
My thought is it just takes one. When we get one, we will get a hundred. It just takes one Miami (forward thinking), or Detroit (nothing to lose), or West Virginia (also nothing to lose) to get the first.
Will they open or be forced to?
It is simultaneously deeply humbling and motivating that a country that identifies as communist has beat us to the punch on capitalist city innovation; then again, they have many decades of experience with SEZs, so it is only natural.
Re: where Jiaolong is,
I believe the address is here: Jiaolong Industrial Port China, Sichuan, Chengdu, Shuangliu, Gaoxin Blvd, 11号-A座 邮政编码: 610240
It should be located in Shuangliu County. If you visit, take pictures ✌️