“Seasteading” and National Sovereignty in the Caribbean

Recent weeks have seen an incident occur off the coast of Thailand that has sparked new debate in the international community, with implications for all nations near and far. Depending on your perspective, the skirmish between Thailand’s navy and the American self-proclaimed ‘seasteader’ and prominent Bitcoin trader Chad Elwartowski, alongside his partner, the Thai national Supranee Thepdet, is either a disproportionate reaction by Bangkok, or the expected consequence for this libertarian couple who have tempted fate in trying to drive change.

While (as detailed below) this particular incident occurred in the waters of Asia, it’s one that has direct implications for the open seas all around the world, with the Caribbean’s unique identity and commercial drawcards ensuring it could become the next frontier for seasteading in future, for better or worse.

Stonewalled in Thailand

Thailand is popularly known the world over as a holiday destination of freedom, fun and beauty but the past week saw a sharp reminder that behind tourism PR is a nation intent on enforcing its sovereignty. It began when Mr Elwartowski and Ms Thepdet declared themselves independent of all nations and jurisdictions while living in their small aquatic home on top of an oil-rig structure.

To the couple, their seasteading lifestyle was about achieving freedom of traditional institutions — something that longtime cryptocurrency trader Mr Elwartowski, like so many in the crypto world, felt was an extension of libertarian ideals. But, for Thailand’s navy, it was a potential threat to that country’s borders. This scenario encapsulates the essential tension in seasteading. Individuals wish to create structures where they can enjoy more personal freedom and flexibility, in the same way that cryptocurrency can offer greater monetary freedom to people than traditional fiat currency does. But, as distinct from a houseboat or larger vessel that may have de facto freedom at the seas yet still must call a port in a nation home, seasteading structures, like oil-rig structures converted into homes, seek perpetual independence.

The Question for Freedom in the Caribbean

By many measures the Caribbean region offers more freedom to aspiring ‘citizens of the world’ than anywhere else on the planet. From Citizenship by Investment Programmes (CIPs) to offshore banking, and the prominence of aspiring crypto capitals like San Juan in Puerto Rico, this region is one that not only offers the lure of rich culture, sunshine and sparkling seas, but also flexibility.

For nations that have already introduced CIPs and maintained an offshore banking sector then, notwithstanding the concerns surrounding both of these industries, it’s not impossible to envision a local government’s receptiveness to something within the seasteading vision. The Caribbean also has a unique advantage here due its high level of political and regional stability. This means there is less concern about offshore stations becoming de facto military bases for rival nations, as there is in other island-nations such as the Philippines.

Permitting a form of seasteading locally could be a profitable avenue for Caribbean nations, and perhaps tie in well to a ‘package deal’ with a CIP, but it would not be without risks. Drug running, human trafficking and other crimes can all thrive when unchecked on the open seas, and providing an offshore base in any form grows the risk of misuse if not properly secured and regulated.

Stormy Seas

For those aspiring to a seasteading lifestyle, the idea is not as simple as a floating structure with some canned food and running water. A key part of establishing an independent nation state is not simply what you do at home — however ‘home’ is defined — but also the relationship you have with other nations. 

As Taiwan’s quest for diplomatic recognition among Latin American nations has shown, a nation state’s validity depends upon other countries recognising it. It’s here that any aspiring seasteader has a big mountain to climb. And, thanks to the open nature of the sea, even if pursued via novel mechanisms (such as how the government of Japan has long practiced traditional whaling, in defiance of the international community, under the auspices of ‘scientific research’), there are already high barriers in place.

Article 259 of the United Nations’ Convention on the Law of the Sea (UNCLOS) provides, when referring to the status of scientific research stations and other equipment on the open seas, that “they [these structures] have no territorial sea of their own, and their presence does not affect the delimitation of the territorial sea, the exclusive economic zone or the continental shelf.”

Striking a Balance with Seasteading

It may not be appealing to seasteaders who are ‘purists’ but, ultimately, the best way right now to go about achieving their dreams appears to be by pursuing a simple yet strong agreement with any nation that is receptive. Such an agreement could require an accord not to breach any laws of the nation, such as engaging in drug running or any other illicit activity, and, in turn, a nation’s emergency resources would be made available. After all, if you begin seasteading and declare yourself independent of all nations, can you then expect a nearby coast guard or navy to come to your rescue if you get attacked by pirates? It is here that the value of citizenship and the protection of a nation’s defence forces become a benefit, even if done under the auspices of a CIP or seasteading agreement.

There are also very practical concerns. It’s much easier to set up a company or run a business when you have a country of domicile with a chance to use a local bank account, and so on. Anyone seasteading may hold lofty ideals of freedom from all nations but the realities of daily life and business persist globally.

For local nations, if seasteading is considered with pragmatism and a common sense approach, it would be possible to take advantage of a market here, and for the Caribbean family to potentially pitch the blue waters of the region as the perfect new locale for seasteading.

Looking Out to Sea

Seasteading as a concept is currently in its earliest days. It’s also something that, like any new phenomenon, will have its mix of genuine pioneers and kooky prophets who blur the lines between what is an option versus what is impossible. Given its close links to the global crypto community, it’s also a concept that could see its fortunes rise and fall alongside this emerging technology.

But while simply doing away with centuries of international law surrounding borders will not occur, ultimately our world is becoming more borderless, and our understanding of citizenship is changing. Several Caribbean nations are at the forefront of driving this change via CIPs and offshore banking initiatives.

Where pioneers seek to make a practical and plausible case for seasteading, over time advocates may find nations receptive to it, especially if the goal of seasteading is pursued not in defiance of nations and territories around the seasteading communities, but instead in observance of them, and with a readiness to forge a common sense partnership accordingly.