We talk about markets as if they stop at the supermarket door. Titus Gebel asks why. If competition disciplines companies, why shouldn’t it also discipline the city hall? In this conversation, Titus Gebel, the founder behind the Free Cities Foundation, argues for a simple trade: swap politics for contracts, parliaments for clear rules, and vague promises for prices you can see and accept or walk away from. It’s a vision that unnerves bureaucracies and excites builders. It also forces a harder question: if citizens were treated like customers, would governments serve them better?
The interview is available in both written and video format:
You often describe free private cities as a radical reimagining of governance. What originally inspired you to develop this idea?
Titus: There wasn’t a single life-changing moment. It came from years of engaging with free-market thinking. At some point, I realized: if markets work so well for goods and services, why not apply the same principles to how we live together? Instead of being trapped in an ancient framework, why not create systems where people can make choices, just like in a supermarket or when traveling? I was frustrated with politics and the futility of convincing people within the old structures. Then it struck me: let’s adopt market principles for governance. That was the starting point.
What’s the biggest misconception about free private cities?
Titus: That they’re only for the rich. That’s completely untrue. Take Prosper in Honduras: the annual fee for Hondurans is just $260 per year. That’s not elitist. A functioning city requires all kinds of people — workers, professionals, entrepreneurs. In fact, in Morazán, Honduras, 99% of the residents are ordinary, often poor Hondurans. It’s not a gated resort; it’s a real community.
How do you ensure inclusivity and fairness in the model?
Titus: Very simply. Everything is transparent. The city publishes its regulations — usually based on traditional common law and the citizenship contract. It outlines rights, obligations, and costs. Anyone can apply, regardless of nationality, ethnicity, or background. The only restrictions are for criminals or extremists. For 99% of normal people, entry is open.
A key concern is whether people will embrace self-responsibility. How do you safeguard against the erosion of this principle over time?
Titus: The answer lies in the residents’ contract. Every individual has a bilateral agreement with the city operator. There’s no parliament or forum for interest groups to hijack the system. Neither the operator nor the majority can unilaterally change your contract. This keeps the model intact and protects individual freedom.
National defense is often cited as a classic public good. How do free private cities address the criticism that they might “free-ride” on the security provided by states?
Titus: Free private cities are not sovereign entities; they’re autonomous within existing states. Defense and foreign policy remain under state sovereignty. In Honduras, for example, free cities contribute 12% of their income to the national government in exchange for services. In the early stages, they might also rely on state services like firefighters or emergency rescue — paid for through negotiated agreements. It’s a win-win model: the operator benefits, the host nation benefits, and the local population benefits.
What are the main obstacles you’ve faced in advancing this concept?
Titus: The challenges come mainly from politics and perception. Governments willing to negotiate are usually innovative and pragmatic. But changes in government can derail projects. The biggest resistance comes from ideological opponents, especially in the media. They see free cities as enclaves for the rich or fear that if they succeed, talented people will leave traditional systems. The opposition is partly a misconception, partly a fear of competition.
What is the Free Cities Foundation currently working on?
Titus: The Foundation itself doesn’t build projects — it spreads the idea, connects initiatives, and hosts the annual conference in Prague. For example, we’ve produced the documentary Zones of Progress to show how special economic zones can evolve into free private cities. Meanwhile, I run TOLIS, a company negotiating directly with governments to establish projects. Right now, we’re in talks with countries in Latin America and have signed a contract with the government of Brunei, which is still in the negotiation phase. There’s a rising number of projects worldwide. Not all succeed, but the momentum is growing.
What keeps these projects alive, even when challenges arise?
Titus: People’s desire for alternatives. Ten years ago, most dismissed the idea as crazy. Today, every second person I talk to sees potential in it. People feel that existing systems don’t represent them, that rules constantly change, but never by them. The beauty of the free private cities model is its contractual clarity and stability. That resonates with many.
Finally, if someone wants to learn more about free private cities, where should they start?Titus: The easiest place is our website, free-cities.org. Download my white paper — it’s a short version of my book and gives a solid overview in about 20 minutes. Then explore the community directory to see current projects, listen to podcasts with organizers, and dive deeper into the initiatives that interest you.
