There are very few places on Earth that remain ungoverned, and even the tiniest islands and city-states tend to have rules in place for things like taxation and citizenship.
Government control is an established reality for most of the world, but what would happen if a neighborhood in your city suddenly became a lawless free-for-all? What type of industries would emerge, and how would people cooperate within that environment to ensure basic services continued to operate?
As Visual Capitalist's Nick Routley details below, one example from recent history sheds light on just how such a situation could work: Kowloon Walled City.
Kowloon Walled City
Today’s infographic is a fantastic editorial illustration from South China Morning Post from 2013 that takes a detailed look at the inner workings of Kowloon Walled City (KWC).
Often described as one of the most remarkable social anomalies in recent history, this bizarre enclave was more dense than any other urban area on the face of the planet.
The story of the KWC site begins in the Song Dynasty (960-1297) when a small fort was constructed to house soldiers who helped safeguard the salt trade. In the latter half of the 19th century, the small fort was expanded into a full garrison town as the threat of a British invasion hung over China.
In 1898, the 99-year lease of Kowloon and the New Territories was established with one exception: the 2.7 hectare walled fortress. Because China never dropped its claim on the site and the British took a hands-off approach, the site became a sort of lawless enclave.
After WWII, squatters began to fill the site and more permanent structures followed. By 1950, the population had grown to 17,000, and by 1990 over 50,000 people lived within a property the size of two rugby fields.
From Squatter Camps to Functioning Neighborhood
There was a tendency to view KWC is an isolated bubble of vice within the city, but the sheer volume of business activity within the informal settlement shows that outside customers were more than happy to benefit from lower priced goods and services. This symbiosis has few parallels in modern history, and it makes KWC a fascinating situation to look back on.
KWC is best known as an enclave of criminal activity and illicit businesses such as brothels and gambling dens, but that only tells one side of the story. Despite the lack of space and formal links to utilities, the neighborhood was remarkably productive. In fact, KWC was often been described as Hong Kong’s shadow economy because the hundreds of tiny workshops and factories scattered throughout the site provided products for businesses across Hong Kong.
People moved to KWC for many reasons, including bankruptcy, poverty, or to avoid deportation. Others went there to take advantage of the lack of law enforcement and regulations.
One prominent example of skirting regulation was the high concentration of dental and medical practitioners operating within KWC. In addition to lower rents, doctors who immigrated to Hong Kong from China could avoid expensive licensing and retraining required by the colonial government. Industrial businesses were free to ignore fire, labor, and safety codes to produce goods at a lower cost, or to sell items that were considered taboo in the formal economy (e.g. restaurants serving dog meat).
Law and Order
Triads acted as a de facto city council by resolving civil conflicts, creating a volunteer fire brigade, and organizing garbage disposal. The tight-knit community within the settlement would also coordinate among themselves to conserve electricity and make repairs to shared infrastructure.
Despite the lack of formally recognized land ownership, people still bought and sold property within KWC. In one example, a construction company struck an exchange deal with the owner of a four-story building. The owner would retain a ground floor flat in a newly constructed thirteen-story building on the site.
The Bitter End
In 1993, after intense rounds of buy-out offers and forced relocations, Kowloon Walled City was demolished and converted into a park. Many of the businesses were forced to close forever as rents in the rest of Hong Kong were not affordable for most of the owners.
All this intensity of random human effort and activity, vice and sloth and industry, exempted from all the controls we take for granted, resulted in an environment as richly varied and as sensual as anything in the heart of the tropical rainforest. The only drawback is that it was obviously toxic.
– Greg Girard, author of City of Darknes