Building Mega-Cities from Scratch in Developing Countries Is an Invitation to Crony Capitalism

In many developing countries where the infrastructure of major cities is overwhelmed by demand, a trend is developing of not trying to fix the existing problems but to build new mega-cities from scratch instead.

Developing governments have realized that both private investors and foreign treasuries are eager to invest in these projects.

The challenge for the these projects that have government funding and oversight, as well as massive capital investment, is not only to bring the vision of the mega-cities to fruition but to avoid massive crony capitalism along the way.

(From Bloomberg.com)
The mania for new cities is partly an outgrowth of globalization, with its “footloose” capital

Governments looking to attract large-scale cash inflows have learned that large-scale projects can attract the attention of investors and foreign treasuries looking to sink their money into something meaty.

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