Indian-American CEO's Ghost City Dream Clashes With Real Nation

The Network School, a project by Indian-American entrepreneur Balaji Srinivasan to create a startup country within Malaysia's Forest City development, has been ordered to cease operations by local authorities. The shutdown was confirmed by Malaysian officials, who cited the school's lack of proper licensing and its operation outside the approved scope of the Forest City project.

Forest City, a $100 billion development on reclaimed land in the Johor Strait, has been largely vacant since its launch, earning it the nickname 'ghost city.' Srinivasan had envisioned the Network School as a pilot for a new kind of nation-state, with a curriculum focused on technology and entrepreneurship, and a residency program for founders and investors.

The school began operating earlier this year, attracting a small group of students and entrepreneurs. However, Malaysian authorities moved to shut it down after determining that it was not registered as an educational institution and that its activities were not covered by the permits issued for Forest City.

Srinivasan, a former technology executive and investor, has been a vocal advocate for 'network states,' a concept he outlined in a 2022 book. He has argued that such communities could offer an alternative to traditional governance, but the Forest City experiment has now become a case study in the challenges of realizing that vision within existing legal frameworks.

The shutdown is a setback for Srinivasan's plans, but he has indicated that he may seek to relocate the Network School to another jurisdiction. Malaysian authorities have not commented on whether any further action will be taken against the project's organizers.