The Critical Compass Podcast - September 17, 2026


Free Cities are the Future of Alternative Governance | Mailyn Salabarria Capitalism & Morality 2026

How Freedom Wins in a 2 Party System | Fergus Hodgson, Drew Barnes, Phil Hart & Michael Harris Steve Cooksey on Beating Diabetes & the Medical Industry | Capitalism & Morality Calgary 2026

Episode Stats


Length

20 minutes

Words per minute

133.46

Word count

2,700

Sentence count

136

People

Also mentioned:

Transcript

Transcript generated with Whisper (turbo).
00:00:00.000 The moral case begins with the presumption that free adults should be allowed to choose,
00:00:05.460 contract, build, associate, and live without having the state pointing a gun at their heads.
00:00:13.960 How small can the political decision-making be for ordinary people to actually have meaningful choices?
00:00:23.480 For some of you, the answer might be greater provincial autonomy.
00:00:27.560 For others, it could be a full-blown secession.
00:00:30.920 For another group, it could be charter jurisdictions, special economic zones, competitive municipalities, or private communities.
00:00:39.020 The actual potential of it is the predictability of the legal framework.
00:00:44.860 We're talking about property rights, clear rules, freedom of contracts, and credible dispute resolution.
00:00:57.560 Good afternoon, everybody. My name is Maylene Salavarria, and as many of you know, I was
00:01:04.980 born in communist Cuba and lived there until 2001. Please don't do the math, but trust
00:01:10.680 me, it was not that long ago. I grew up as the proverbial child of the state inside Castro's
00:01:18.360 experiment to manufacture their so-called new revolutionary man. Yeah, the same one
00:01:24.580 that you see in colleges all over Canada, by the way, in a place where government did
00:01:29.900 not simply regulate economy, but it also tried to replace it and a place that it not only
00:01:36.980 simply limit political choice and freedom, but it made meaningfully almost impossible
00:01:43.880 to exit from it.
00:01:45.920 As you can imagine, I did not leave Cuba looking for better weather.
00:01:50.960 I voted with my feet, literally, when voting with your feet was not even in social media,
00:01:57.300 looking for an idea of freedom that back then I didn't even know how to properly articulate with words.
00:02:04.620 When I arrived to the United States at age 27, freedom against was not some academic idea that I have read
00:02:13.220 and I was, you know, very theoretically prepared to explain to anybody.
00:02:16.880 It was something that I have to start learning and practice from the scratch.
00:02:22.720 25 years later, my warnings about life in Cuba and how it's replicating all over the world in different cultures and languages have become way more simple.
00:02:36.560 It is a system, a system, any type of a state or government becomes dangerous when people have no meaningful choices inside it.
00:02:46.080 And it becomes even worse when you don't have a realistic way to escape it.
00:02:53.660 That is one of the reasons why the whole concept of free cities and special jurisdictions and voluntary and alternative forms of government made so much sense for someone like me.
00:03:04.620 So today, instead of debating and analyzing all the issues and problems that we have discussed in the morning and early this afternoon, once again, I want to bring and propose to this audience very radical ideas.
00:03:21.160 My question today is, instead of continually asking how do we force one political system to work for everybody, why don't we start asking a more bold, different question?
00:03:38.880 Why shouldn't people have more systems of freedom to choose from?
00:03:46.200 Think about how strange this is.
00:03:48.620 Government is one of the last major monopolies we are still expected to blindly accept, no questions asked, almost by default.
00:04:01.160 How many entrepreneurs do we have here in the room? Just raise your hand.
00:04:06.380 We entrepreneurs know that we live by three very basic rules or questions.
00:04:13.820 Are people choosing what I have to offer?
00:04:17.920 Am I delivering what I promise to keep my client happy and satisfied?
00:04:23.520 And what happens if I don't meet the expectations of the market and somebody else comes and offers something better?
00:04:31.420 That pressure, obviously, we all know that is uncomfortable, but it's also what keeps us honest and it's what keeps progress and innovation going.
00:04:41.940 We entrepreneurs understand competition in restaurants, airlines, technology, banking, education, housing, and almost every other single part of our life in human society.
00:04:55.380 Then, when we get to the topic of governance, suddenly competition is treated like a very radical idea.
00:05:03.980 The movement of free cities brings precisely that, that missing pressure back into the market of governance.
00:05:15.500 And yes, I said market on purpose.
00:05:18.800 At the Free City Foundation, our mission is to educate and advocate for greater choice and competition in what we call the market of living together.
00:05:28.580 competition obviously does not guarantee that every provider will be good markets do not promise
00:05:36.100 perfection they have never done it what competition does is number one expose failure faster
00:05:41.940 imagine how fast would expose the failures of the state and being government reward better ideas
00:05:48.900 and give people somewhere else to go when their current provider does not longer meet their needs
00:05:57.340 That distinction matters.
00:05:58.780 I am not asking anybody in this audience or anywhere else to believe that free cities or the concept of special economic zones or special jurisdictions are going to be like a magic pill that is going to produce a perfect model of governance.
00:06:15.700 doing something like that would be denying discipline and denying competition, and it would
00:06:25.000 be pretty much like replicating the same centralized state government that we have spent the day
00:06:31.100 criticizing and analyzing in this room. For the sake of clarity, when we talk about free cities
00:06:38.100 and everything that falls under that umbrella, we're not talking necessarily about a new flag
00:06:43.780 or a new sovereign country.
00:06:45.160 It is mostly a concept, an umbrella, a legal framework where territories can be created
00:06:52.660 by a contract within a host nation with meaningful local autonomy, stronger protection of individual
00:07:00.240 rights, and much more freedom on how people can live, work, conduct their business, innovate,
00:07:07.880 build, invest, and organize their communities.
00:07:11.320 Some special jurisdictions that many of you in the room might know are free private cities.
00:07:17.040 Some are intentional communities.
00:07:19.540 Some could be charter city or contract city models like we have in a couple of unincorporated areas in the United States.
00:07:27.660 And some are models that we probably have not even created yet.
00:07:32.460 And that is precisely the whole point of bringing the radical idea of competition to the market of living together.
00:07:40.140 We're not looking for a perfect template. We shouldn't be looking for that. And we don't have to wait for a new flag to begin decentralizing the power where we are living.
00:07:51.880 The common thread in this concept and this idea is actually not the flag. It is the jurisdictional choice. It's moving decisions closer to the people directly affected by them and creating room for different rules, different institutions, and different communities to prove themselves.
00:08:11.260 For those of us defenders of capitalism, this is where the idea gets very practical.
00:08:19.440 The real competitive advantage of embracing decentralized governance, voluntary governance, is not simply low taxes or fewer regulations.
00:08:29.260 Please don't buy under the stereotype that these alternative forms of governance are only for rich people finding or trying to look for tax havens.
00:08:38.180 The actual potential of it is the predictability of the legal framework.
00:08:44.340 We're talking about property rights, clear rules, freedom of contracts, low barriers to entry, and credible dispute resolution.
00:08:54.160 For free private cities in particular, the model goes further.
00:08:58.480 We're talking about rights and obligations that are defined in a contract that people enter into voluntarily and where disputes can be resolved through an independent arbitration body.
00:09:10.380 The latter is very important, again, for those of us that are business owners or entrepreneurs.
00:09:16.280 We know that arbitrary risk is very hard to survive.
00:09:20.260 The rule that changes after you already invested, after you already opened the doors of your first business, the permit that depends on who is in office and whether he likes your business or not, the contract that means that one thing today, it could be something different tomorrow.
00:09:38.160 That's why innovation and capital doesn't move only to places with low taxes.
00:09:43.800 They move to places where people believe that tomorrow's rules will still look reasonable, familiar to the rules that they have today.
00:09:53.660 And there is a moral point for it too.
00:09:56.920 The moral case for competitive governance is not that every market outcome will be perfect.
00:10:03.300 We know nothing made by a human being will ever be.
00:10:05.920 The moral case begins with the presumption that free adults should be allowed to choose, contract, build, associate, and live without having the state pointing a gun at their heads.
00:10:20.260 Consent matters. Exit matters. Choice matters. And the right to refusal is the most important right of all.
00:10:29.760 Last week, I've been talking to some of you since yesterday, I was in Roatan, Honduras, inside Prospera, one of the special economic zone cities in Honduras.
00:10:41.320 That's where we held the 2026 Free Cities Conference.
00:10:44.860 For the first time, we were not sitting in a hotel ballroom in Europe or the United States speculating or theorizing on books and white papers how a free city or special economic zone should look like.
00:10:57.500 We held this year's conference Inside One, and that significantly changed the conversation about freedom and our individual right to choose where to live and where to conduct business.
00:11:13.880 A theory, like I said before, in a paper or a book may sound like flawless, but trust me, reality of observing operating a free city with your own eyes, it's a better editor than any ideology they want to forfeit us in government-controlled schools.
00:11:32.380 While I was in Prospera, we look at an operating special jurisdiction.
00:11:36.860 We talk to builders, entrepreneurs, residents, investors, and people dealing with the very real political and legal consequences of being bold enough to try something different.
00:11:50.300 Later today in the breakout session, I can go into more details into my testimonial experience visiting both Ciudad Murazan and Prospera.
00:11:59.380 But we were able to see what worked, what did not work, and what the next generation of special jurisdictions might look like in real life.
00:12:09.820 But for this conversation, I have to tell you that I came back from that conference with three lessons that I believe mattered the most for the audience in this room.
00:12:21.820 First is that the special jurisdiction and free cities movement is no longer a theory.
00:12:28.000 People are building. People are investing. People are living inside these experiments at testing institutions in the real world.
00:12:38.100 Number two, there is no one single template for a free city or a special jurisdiction.
00:12:44.500 Prospera does not look like Ciudad Morazán. Ciudad Morazán doesn't look like an intentional community in Eastern Europe.
00:12:51.160 A sea-steading project coming out in Panama or the Malvinas will solve a different problem from what a special economic zone could do.
00:13:01.720 And that's exactly what we are aiming when we talk about decentralized governance is the future of the human society.
00:13:10.760 Number three, and the last lesson, is that builders matter more than ideological purity.
00:13:18.260 One of the clearest messages that I heard, especially in Ciudad Morazan, is that you could walk to the residents and ask them, oh, are you a libertarian or a classical liberal?
00:13:29.580 And they would literally turn and look at you like you have five heads.
00:13:33.020 Because for that market niche, that ideological purity test that we are so used to discuss in the first wars that developed countries doesn't exist.
00:13:43.380 For them meant leaving one of the most dangerous criminal zones in Choloma and then finding a city where they can find work, where their children could have safe parks and areas to live and where they could have better choices and less regulations to launch and open their businesses.
00:14:01.880 Similarly, in Prospera, one of the lessons was to not try to centrally engineer every economic outcome.
00:14:09.880 Instead, they are creating the conditions in which entrepreneurs and communities can discover what works and simply discard what doesn't work.
00:14:19.260 Government does not need to predict the winners. That's exactly the problem that we have been discussing most of the day today.
00:14:26.720 It needs to stop making it so hard for potential winners to get into the arena in the first place.
00:14:35.200 Pretty much, they just need to get out of the way.
00:14:37.800 Now, make no mistake, some of these proposals and experiments will fail.
00:14:42.940 And that's good.
00:14:44.680 Markets require the possibility of failure, and failure is information when you are pursuing innovations again in the market of living together.
00:14:55.060 However, if every free city had to prove in advance that they would be the best or that they would succeed, again, we would be using the same central planning logic that we claim to reject.
00:15:07.620 Some jurisdictions we know would attract entrepreneurs and families, like the example of Ciudad Morazan.
00:15:14.580 Others will not. Some regulations will work. Others will be copied, changed, modified, or completely thrown away.
00:15:21.040 That is not a weakness in the idea of alternative forms of governance. That's actually the biggest power. The biggest goal is to have that competition and that experiment because the goal is not to find only one centralized system that works for everybody.
00:15:37.260 The goal is to have many systems that can compete with each other and let free individuals with unalienable rights decide and pick and choose what works best for them.
00:15:50.520 Here in Alberta, I know that you have questions about sovereignty, decentralization, provincial authority, and political distance, and I know that those questions are not theoretical either.
00:16:03.740 Many of you might be asking whether decisions that shape your life, business, resources and communities should be made closer to the people who actually have to live with the consequences and literally pick up the pieces of whatever turns out good or bad.
00:16:20.720 The free cities movement in general pushes your questions and your concerns a little step further.
00:16:28.520 How small can the political decision making be for ordinary people to actually have meaningful choices?
00:16:38.040 For some of you, the answer might be greater provincial autonomy.
00:16:42.420 For others, it could be a full-blown secession.
00:16:44.820 For another group, it could be charter jurisdictions, special economic zones, competitive municipalities, or private communities.
00:16:53.800 Regardless of which one is the model that works for every single person, I am less interested, again, in forcing everybody to agree with one destination.
00:17:04.040 I am more and more interested in restoring that idea that people-free human beings have the ability to choose what fits better their needs within multiple destinations.
00:17:16.900 And that brings me back to Cuba, where I escape one system, one political authority, and only one permissible economic vision.
00:17:27.340 Then I arrive in America, and I have to learn freedom from the ground up.
00:17:32.540 I learned how to write a check. I learned how to walk into a supermarket and choose from what I felt was an absurd number of different toothpaste.
00:17:44.600 And yes, at age 27, I learned how to use a microwave.
00:17:49.880 Though things might sound almost ridiculous until you have lived in a place where choice was treated as something dangerous.
00:17:58.320 And I know that many of you advocating choices in Alberta have gotten that same feeling.
00:18:05.160 So freedom becomes real when, again, you are able to provide ordinary choices for ordinary people to pick from.
00:18:12.940 Choice for work, choice of enterprise, of association, where to live.
00:18:18.760 So the question, again, is why shouldn't governance be deception?
00:18:24.100 Why cannot we have different choices and options for the governance that we want to opt in?
00:18:32.460 The future of liberty, free markets, and human flourishing cannot depend entirely on winning the next election.
00:18:40.220 We have discussed how the political system works by now.
00:18:43.780 It cannot depend on whether we persuade 51% of the population or waiting for a national government to reform itself.
00:18:53.580 We should keep fighting for a better government.
00:18:56.200 Yes, of course.
00:18:57.140 But at the same time, we have to proactively start building alternative solutions.
00:19:02.200 We should build those places where rules are clear, rights are protected, enterprise is welcome, and people can choose to come or choose to leave.
00:19:14.480 Freedom with memory teaches you that you cannot take choices for granted with anything in life,
00:19:21.400 and you should not take it with the government that you opt in either.
00:19:25.320 That's why free cities are the future, because freedom will need somewhere to go.
00:19:31.480 Señora y señores, let's stop arguing and let's start building places where this freedom can move on and live.
00:19:39.980 Thank you.
00:19:43.880 Thank you.