User:DanB/Cayman Info

Basesteading

This page is about using the Cayman Islands as a location for a Basestead or Seastead Outpost. The basic idea is to assemble a moderate number of would-be Seasteaders into one location on land. After assembling, we then work simultaneously on engineering work (designing and building seastead structures) as well as socio-economic structures (laws, businesses, etc). For more discussion of these ideas, see the following links:

• BaseStead strategy wiki article.
• Seastead Outpost: Belize.
• outpost location forum thread.
• Seastead Outpost Belize forum thread.

Different people have expressed different ideas about what the goals of the basestead should be. One vision has been articulated by Pastor_Jason here. The emphasis of his idea is on what can be called economic de-integration. This means that the community should be self-sufficient in the sense of minimizing dependence on the outside world. Thus, the plan involves substantial construction and infrastructure development. It appears to be very similar to the Windward intentional community, with seasteading as the eventual goal. This model is very attractive if one is optimistic about one's ability and endurance for large scale construction projects. Most importantly in terms of location, it requires a large plot of land. This can be called an idealist vision.

An alternate view, which can be called a realist vision, places less importance on economic de-integration and more importance on making money. One of the main goals of the Basestead is to allow participants to develop construct economic arrangements (i.e. starting companies) that can easily be transferred to the seastead. The strategy requires us only to construct seastead structures, and not much in the way of related items. This strategy always prefers to buy off-the-shelf parts when possible.

Hedging View of Basestead

As is obvious to everyone, Seasteading is a risky project. This risk is not physical; it is the simple risk involved in all ambitious projects that the participants will work and work and then at the end of the day have very little to show for it.

One of the goals of the realist view of Basesteading is to hedge the risk associated with the project. Thus, one of the main goals is for the participants to start companies. The company is started on land with an eye toward transitioning to a seastead-based operation, but if seasteading doesn't go anywhere, you just continue operating the company on land, so you don't lose your investment of time. This strongly mitigates risk.

Similarly, the choice of Basestead location should be made with risk in mind. The question should be asked: if I move to location X, with the idea of eventually transitioning from X to the ocean, will I be happy in location X if seasteading never goes anywhere? Even better: would I move to location X, if I had never heard of seasteading? If the answers to these questions are "yes", then the possibility that seasteading works out is purely beneficial.

Another thing to keep in mind is the long-term nature of the Seasteading project. The current timeline indicates that total worldwide Seastead population will be 1,000 in ten years. Thus, even if Seasteading does work out, it is going to take a long time. This adds weight to the idea that we should pick the Basestead location with care, as we will be there for many years.

Cayman Islands

I was thinking about moving to Cayman before I had ever heard of Seasteading. I think that the Caymans have many advantages relative to other locations for libertarian-minded individuals. I think a realist-style basestead could prosper in the Caymans. I am not sure about an idealist-style basestead, simply because it seems to require large amounts of land.

The Wikipedia page on the Caymans is quite informative. I will try not to replicate too much of the information presented there.

Overview

The Cayman Islands are located a bit south of Cuba, and to the east of Belize and Yucatan (map). The main island is Grand Cayman, however two smaller islands (Little Cayman and Cayman Brac) are also included in the country. The Cayman Islands are an overseas territory of the United Kingdom, which is responsible for the defense of the country, and for the conduct of foreign relations. However, on domestic issues such as taxation and immigration CI primarily manages its own affairs.

Economy

The 2006 population estimate of CI is 52,000, up from 41,000 in 1999. This rapid population growth can be attributed to the strong economy of the island. The per capita GDP is $42,000, making it the richest territory in the Caribbean. There are no income taxes on either people or companies. All government revenue is derived from indirect taxation of imports, mostly at a level of 20%. The national debt of CI is about $70 million, or about $1,400 per capita (compared to $40,000 and rapidly increasing per capita debt in the US).

Two points about the economic situation seem relevant for seasteading. First, financial services is one of the economic staples. This means that there will probably be many software jobs. Indeed, this site claims that CI needs foreign workers and that 49% of the work force are expatriates who have received work permits. The other major component of the economy is tourism. As tourism is also expected to be a major component of the seastead economy, there could be synergy here (a seastead could be an interesting tourist attraction for CI).

Immigration and Red Tape

A significant concern for any seastead outpost location is the immigration laws imposed by the host country. If it is very difficult for foreigners to enter and work in a country legally, it will be very difficult to set up the outpost.

The Caymans seems to have a loose immigration policy with a catch. The easy part is getting a permit. The islands are highly dependent on foreign workers, so the government makes it fairly easy to obtain a work permit. Unfortunately, while the country is highly dependent on foreign workers, so many people wish to immigrate that the locals fear that Caymanian identity is becoming diluted. Thus there is a 7 year "rollover" rule which means that after you spend 7 years on the islands, you must leave for two years.

There are four ways to qualify for permanent residency in the Caymans: be legally resident for at least eight years, be married to a Caymanian, be a wealthy retiree, or be an entrepreneur/investor. Combined with the rollover policy, the 8 year requirement is a bit of a Catch-22. However, the other ways of achieving permanent residency may mean that this does not matter much. More information here.

Real Estate

As expected for a tropical resort island, real estate in Cayman is expensive. However, there seems to be substantial legal advantages to owning property in Cayman. For example, there is no yearly property tax (though there is a property sales tax). More information is available here.

It is impossible to obtain hundred-acre plots of land on these small islands. For a waterfront property, a typical asking price would be about $200,000 for an acre of undeveloped land. Prices are lower on the smaller, outer islands Little Cayman and Cayman Brac. Here are some example vacant land properties:

• 1.2 acres, $210k
• .5 acres, $155k

Here is a search page for Cayman real estate.