Labour division

Let’s consider some end users of a government. There are two major categories of them: individuals and organisations. Most commonly these two groups have opposite interests. An obvious example would be the two parts’ opinion on a country’s economic situation: businesses prefer to sacrifice short-term profits for the long-term growth, while families just cannot cut spending waiting for a better future. So, what the majority of governments do is balance between the goals of each of these groups. As you know, it’s impossible to please everybody at a time, consequently there is a very limited quantity of people that are satisfied with the stuff their government does for them and a very limited quantity of organisations that consider the government they work under competent in protecting their interests in domestic and international environments.

But here is an idea: maybe it would be better for a government to specialise on services either for the individuals or organisations?

Imagine a country that’s a heaven for individuals. High taxes? Maybe, but in return people get a lot of good stuff: high-quality infrastructure, thoughtful cultural development programme, international diplomatic presence. The government does less things, but does them in a way that’s best for their citizens. Now imagine another country where this time the organisations feel best. Comprehensive corporate law system, optimal taxation, good possibilities for trade. And here the government also performs less functions — just the business side of things, less thinking about individuals. A good example of this kind of functional division in the real world is banking business where one company in a group only does consumer banking, and another one services only corporate clients.

Obviously, each of these two countries could have bad times, so they will keep investing their profits into each other. For example, during an economic downturn, when the business-oriented state starts to experience difficulties, it gets extensive financial help from the people-oriented republic. By the time when the citizens of our individualist region start to feel the influence of the crisis, the business territory already gets recovered from the imbroglio and is ready to help. This double sponsoring will also provide both countries with advertising: people from individual-oriented province will want to start doing something for a living at the place that’s good for business, and business owners will decide to stay at a country that provides the finest services for residents and will offer their employees to do the same thing.

We already have some examples of such single-sided countries in the real world. Monaco is considered to be really good for its residents and really bad for corporations. Liechtenstein is on the other side: it has a reputation of a place where businesses feel good and where individuals have absolutely nothing to do. I personally think that such “distribution of tasks” will help governments to perform better, to provide the best services and to attract more end users. It’s always more pleasant to work with an expert, isn’t it?

 
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