A group of 85 economists have endorsed Honduras' decision to withdraw from the World Bank's arbitration body, adding a new dimension to the conflict between Honduras and Próspera, a crypto island-building company. Próspera, a Bitcoin-friendly special economic zone on Roatán island, sought $10.8 billion from Honduras following a legislative change in 2022 that revoked the island's special status. The dispute unfolded at the International Centre for Settlement of Investment Disputes (ICSID). However, economists from Progressive International praised Honduras' withdrawal as a defense of democracy in a letter dated March 19. They questioned the benefits of mechanisms like ICSID in attracting foreign investment. Since President Xiomara Castro's election in 2021, Honduras has faced numerous ICSID cases, including a significant claim from Próspera. The company's establishment of a ZEDE on Roatán raised concerns among locals and the UN regarding consultation and human rights issues. Despite the controversy, Honduras is bound to honor any arbitration outcome with Próspera until August. Read more AI-generated news on: https://app.chaingpt.org/news