| | From an excessive state to a truly liberal social system
In this article we would like to discuss what are the most effective methods that could be used to solve the fundamental problems of the transition period for a society that has lived for a long time under an excessive state, but has decided to radically liberalize own social structure. To do this, let us imagine that there is a country where several generations lived under conditions of state paternalism, but one day supporters of a liberal model of social order came to power, receiving carte blanche for decisive action from the majority of voters. Seeing this in real life seemed unthinkable until political changes occurred in Argentina that somewhat resembled the hypothetical situation mentioned. Previously, something similar was tried to be done by Georgian reformers, who achieved impressive success in the 2000s, failed to stay in power long enough to consolidate and develop their initial achievements. It is impossible to cover all aspects of this complex topic in a short article, and we will focus on the most fundamental things, which, in our opinion, are absolutely indispensable for those who really intend to implement such radical reforms.
To overcome the difficult legacy of previous decades, the reformers will need to address a whole range of complex issues. Some basic measures, such as the abolition of price controls and the exchange rate of the national currency, termination of subsidies for production and money emission to cover the state budget deficit, will have to be implemented immediately or within a relatively short period of time. These will be painful changes for many, but their inevitability will be clear even to opponents of reforms. They will bring not only a short-term deterioration in the lives of the poor, but also obvious positive changes. However, to completely dismantle the vicious system and build a new liberal social order, meticulous and persistent work over a long period of time will be required. The effectiveness of these efforts will depend on how adequate the methods used are. Below we provide a brief description and rationale for the approaches and methods that we believe to be most effective for achieving the goals of the transition period.
1. Due to the refusal to cover the budget deficit through emission, the government will have to reduce or cancel some social payments. These painful measures must be implemented in compliance with clear criteria, justified, among other things, from the standpoint of fairness, and accompanied by the most convincing campaign to explain the necessity of these steps. In particular, there should not be the same attitude towards poor elderly people who cannot have any income other than their pension, and well-off officials or former officials who, throughout their careers, have successfully monetized their status and established benefits for themselves at the expense of the budget, working in a system that was driving the country into crises and debt. For example, if retired officials have higher pensions or other benefits that ordinary pensioners do not enjoy, then such benefits could be cancelled. In order not to leave those who really need it without support, it may be necessary to resort to internal and external loans, which, unlike those issued by own central bank, will have to be serviced and repaid on time at the expense of income from the economy, the successful development of which, in turn, will be ensured by competently implemented reforms. Reformers in these matters must act consistently, but cautiously enough, and make every effort to prevent the reform process from being disrupted due too much social tension. Already at the initial stage of reforms, it is desirable to carry out constitutional and legislative changes that will exclude the easy cancellation, through ordinary democratic procedures, of those government decisions that ensure adherence to the fundamental principles of a liberal society, primarily the principle of living within people’s means.
2. In parallel with measures to attract investment in large projects, it is necessary to actively engage in creating a favorable environment for the activities of competitive small and medium-sized businesses and the self-employed, oriented, among other things, towards foreign markets. If such businesses are developed not only by local residents, but also if it is ensured a significant influx of talented and promising entrepreneurs and specialists from less economically free countries into the country, then this will not only provide an increase in budget revenues from their activities, but will also constantly increase the income of those, mainly native residents, who ensure the development and functioning of the entire infrastructure for the comfortable existence of new businesses and those who are engaged in them. The most effective way to use such opportunities would be measures to stimulate and support the activities of private consulting and management firms specializing in projects for the targeted development of strategically necessary business areas, the infrastructure required for this, and in the involvement of both citizens of the country and entrepreneurs and specialists from other countries in the projects. Integrated projects of this kind could provide many native residents with work that bring not only material well-being, but also moral satisfaction from the understanding of its importance to the success of their country. These may be projects intended for existing cities, or requiring the allocation of territories for new development (possibly with the acquisition of the status of a special economic zone), as is can be necessary, for example, to implement the concept described in the following article. If strategic objectives are correctly defined and private initiative aimed at achieving them is stimulated, then success will be ensured.
3. To better contribute to the successful course of reforms, projects implemented by the previously mentioned specialized firms should bring the structure of the economy and the system of division of functions closer to what will be characteristic of a developed liberal society, and which is briefly described in the previous article on the advanced model of society. The areas of activity mentioned in the following article as strategically necessary for the local project can also be considered as such for the whole country undergoing reform. In order to improve the general conditions for the development of strategically necessary business areas, it is important to ensure the constant growth of the comfortable rental housing market, create a clean, safe and aesthetically attractive urban environment, and develop the trade and service sector, including servicing English-speaking consumers. A necessary component of a correct reform strategy is the consistent development of bilingualism among the country's population. Reformers should take consistent measures to ensure that the majority of the economically active population, along with their native language, also has a high level of English proficiency, as was done, for example, in Singapore.
4. Among the large number of officials whose jobs will have to be cut in the course of radical reforms, there will be quite a lot of professionally competent and personally honest people who, under the new conditions, should be given the opportunity to engage in activities that are more useful to society. Therefore, among the projects aimed at improving the economic structure of the country, there should also be those that provide for the participation of former officials who would be ready to “go over to the side of the people” and take part in the construction of a more liberal society.
5. The government of the country should strive to ensure that its relations with other countries, as much as possible, comply with paragraph 6 and paragraph 10 of the article on the cultural code. The creation of effective political and military alliances, as well as economic integration with countries with similar principles of domestic and foreign policy and the societies of these countries, is a vital necessity in a world where unfriendly and even hostile countries and organizations will continue to exist for a long time, and in many countries, social democratic, highly bureaucratic state systems will remain, preventing those countries from pursuing an adequate foreign policy.
6. It is necessary to establish cooperation with many of the global, transnational corporations, which in the long-term strategic plan are rather allies of countries that have embarked on the path of liberal reforms, despite their current close, in many ways forced interdependence with the social democratic states and their dominant political forces. In recent years, it has become common for people of liberal views to criticize the policies and managements of corporations that are global monopolists in the areas of digital technology and social media for their bias and other sins. We can agree with this criticism, but only in part, since we shouldn't forget what enormous new opportunities all of humanity has received thanks to these corporations and their founders. Today they give us things we can no longer imagine our lives without, including providing a huge amount of free services to a huge number of people. However, these are commercial enterprises that are forced to adapt to the mores and habits that dominate societies and operate within the framework established by the governments that these societies elect. Those who criticize them sometimes resemble people who are dissatisfied with the insufficient cleanliness of the air and water, without which they cannot exist, but which they themselves pollute. This goes against the principles described in paragraph 7 of the article on the cultural code.
7. It is obvious that the transition from the old way of life to the new cannot occur at the same speed for all members of society. At first, a small but gradually increasing number of people will be ready for a rapid transition to new rules of existence. One simple but effective step could be to remove a person from the state systems of free medical and pension provision and free education. Initially, this could be a voluntary decision in exchange for exemption from mandatory payments to the funds that finance these programs, as well as a return, in one form or another, of funds previously contributed to those funds. Some time after the start of radical reforms, after careful preparation, it would be possible to begin the gradual development of a new economy sector operating on a state cryptocurrency and in a new tax regime. This programme could use ideas from paragraphs 14-16 of the article on the advanced model of society. If properly managed, this new sector will grow very quickly. Then, after it has developed to a significant part of the entire economy, which will still take quite a bit of time, it will be possible to make a complete transition to the new currency and the new tax system.
8. An important component of reforms should be the liberalization of the school education system. In particular, it is necessary to eliminate bureaucratic restrictions that can hinder the implementation of its mandatory tasks listed in paragraph 10 of the article on the advanced model of society. It would also be useful to come up with ways to encourage schools to address these educational tasks more effectively.
9. It would be appropriate for the reformist government to establish a dialogue with supporters of liberal reforms from other countries by inviting them to an English-language, permanently working online platform created specifically for this purpose. Like-minded people from different countries will be interested in receiving first-hand information about the progress of reforms, including problems that need to be addressed. It will also be interesting for them to think about these issues and share their own ideas, including because in most other places it will be difficult to even dream of practical steps to implement radical reforms for a long time to come.. Those of them who prove to be able to make the most valuable contribution to solving problems could be invited to participate, at least online, in the work of a permanent think tank. Skillful use of all the capabilities of collective intelligence, as well as techniques for systematically solving inventive problems, including various brainstorming formats, would greatly help in the implementation of reforms. Collaboration with like-minded people from different countries would provide not only intellectual but also moral support, which is necessary in solving extremely difficult problems.
We have described here only what we consider to be the most fundamental and important of the entire enormous complex of necessary measures in carrying out this kind of social reform. We would really like to live to see the moment when it will be possible to see a systematic implementation by some country of what is proposed in this article.
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