A group of 85 economists has supported the Honduran government’s decision to leave the World Bank’s arbitration body, the International Centre for Settlement of Investment Disputes (ICSID), amidst a legal conflict with the crypto island project Próspera Inc., which seeks $10.8 billion in compensation after losing its special economic status due to legislative changes in 2022. The economists argue that withdrawal from ICSID is a defense of Honduran democracy and question the economic benefits of such arbitration bodies for governments, suggesting they limit states’ rights to regulate in favor of public interest. This legal battle comes in the context of broader concerns, including the United Nations expressing human rights worries regarding the Zones of Employment and Economic Development (ZEDEs) and local resistance to Próspera’s development on Roatán Island, fearing displacement and lack of proper consultation.
Source: Bitcoin
