Abstract

AbstractAs the world faces unprecedented urban growth – particularly across Africa and Asia – traditional governance models are proving inadequate to manage the associated economic, infras‍tructural, and social challenges. This chapter introduces charter cities as a bold and innovative alternative: newly built urban areas governed by special legal and institutional frameworks designed to foster investment, good governance, and rapid development. Drawing on lessons from cities like Shenzhen, Dubai, and Singapore, and informed by institutional economics, the chapter explores how charter cities can overcome entrenched governance failures by embedding autonomy, accountability, and public-private collaboration into their design. It also addresses key risks, such as political resistance, cultural misalignment, and profit-driven exclusion, and outlines mitigation strategies to enhance local legitimacy and ensure inclusive growth. Ultimately, the charter city model offers a replicable framework for catalyzing prosperity and institutional reform in rapidly urbanizing regions, reframing the future of development through governance innovation.