Implementing a Contract-Driven Direct DemocracyEdit


The transition to a contract-driven direct democracy from a bureaucracy-driven democratic republic is already happening to various degrees in different nations. Security contractors are replacing an inefficient military bureaucracy. Arbitration is being used more often as a fair and efficient alternative to the bureaucratic justice system. Prisons, schools, and other institutions are also being implemented more efficiently by third parties.

All of the criticisms of the process of privatization have been criticisms of the specific implementation. A poorly designed contract which fails to include accountability, fails to avert developing an uncompetitive monopoly, and fails to explicitly dictate the standards to be met will not efficiently serve the citizens. It is true that privatization plans can create monopolies, fail to provide the incentives for performance, and fail to hold the contractor accountable. Keep in mind that all traditional government institutions are monopolies, lack incentives for performance, and are only marginally accountable.

One misconception about privatization is that it is an innately libertarian initiative. Libertarians, being the most critical of government institutions, have historically championed privatization as an alternative to wasteful government institutions. Privatization is, however, as useful for a welfare state as it is for a libertarian state. Privatization can even, in theory, be used in the implementation of a socialist state.

Absolute PrivatizationEdit

Absolute privatization is difficult to visualize at first because modern political science often presumes that sovereignty must lie in the hands of an individual or a council of individuals that explicitly dictates policy. The leap of imagination that allows one to view the mechanism which generates contracts as the sovereign entity is necessary. The sovereignty of this mechanism, like the sovereignty of humans, is only as valid and secure as the subjects are unwilling to or incapable of deposing it.

The interaction between the vital government institutions will be dictated by the contracts between the citizens and the contractors. The following speculation as to how contractors may replace the functions traditionally entrusted to government institutions is not prescriptive. Unique societies will develop unique relationships with unique contractors. The following is no more than a speculative sketch of how the contractors may interact. Discussion about how the system may be bootstrapped is reserved for the fourth chapter.

Justice, the process of deciding whether or not a contract has been violated, will be entrusted to a third party with a contract that specifies how judges will be selected and what tenure (if any) the contractor will grant them to assure that they are not unduly subject to the immediate profit motive of the contractor. If the contract between the justice contractor and the citizens is violated, then the recourse of the citizens can include rescision of the contract, replacing the arbitrative contractor with another arbitrative contractor which will have the authority to convict and sentence the offending contractor.

Arbitration similar in nature (but not scope) to what is here is already revolutionizing the legal world. One thing to note, however, is that an arbitrative contractor directly serving the government and responsible for convicting citizens of felonies will not be subject to the same criticisms that modern arbitrative corporations have because they will be contracted by the society, not by one of the parties. There will be some form of appelate process and possibly even jury trials if that is the concensus.

Enforcement contractors will enforce the societal contract, apprehending suspects for review by the arbitrative contractor as is stipulated in their contract. Employees of the enforcement contractor will have the rights and responsibilities necessary to secure the safety and security of the citizens. Imprisonment, investigation, and inspection would likely be granted in separate contracts.

The education system will probably operate on a voucher system similar to what has been successful in several communities.

3.D. Health, Welfare, and Insurance

3.D.1. Universal Minimum Healthcare Policy

3.D.2. Universal Hardship and Disability Policy

3.E. Insurance and Social Progress

3.E.1. Actuarial Sciences and Personal Accountability

3.E.2. Actuarial Sciences and Personal Improvement

3.E.3. Actuarial Sciences and Direct Incentives