The Next Democracy

Praise for THE NEXT DEMOCRACY "Real innovation of the political and democratic system as we know it today is an uphill battle. But if we fail to reinvent democracy, we risk losing it altogether. That's why The Next Democracy is so refreshing and thought provoking. I don't agree with all that is said, but I like how radically ambitious and intellectually creative it is. Ovacik challenges us to imagine a world where our data serves not just the capitalist machinery but, first and foremost, strengthens democracy-where citizens experience true agency through a fully transparent decision-making process." -UFFE ELBÆK, former Member of Danish Parliament, Danish Minister and party leader and founder "When the world feels like it's falling apart, you can either panic or start inventing. With The Next Democracy, Ovacik has the courage to do the latter. It is not easy to reimagine something as foundational as democracy, but Ovacik has created a transformative vision that offers a radically different framework for our future. His Merit Democracy concept harnesses the power of impact markets, data, and citizen participation to build governance systems that can thrive and solve today's complex challenges. I hope the world will listen. Our future may depend on it." -ANDERS HVID, Co-founder of Dare Disrupt, Co-founder of Founders of Tomorrow "Digitalization disrupts democracy. Beginning from this well-established observation, Ovacik takes 'the side of technology' to suggest digital solutions to democratic problems. To solve today's unprecedent challenges, Ovacik argues, we should harness digital technologies for better governance and build a data-driven marketplaces of ideas for policy proposals as well as public services. The book is refreshingly and unapologetically tech-positive, aiming to use opportunities of tech to regulate tech itself, setting out a vision for 'Merit Democracy' that is sure to spark controversy and invigorate entrenched discussions on the democratic potentials of digitalization." -SINE NØRHOLM JUST, Professor, Artificial Intelligence, Roskilde University "The Next Democracy jolts us out of tired thinking about politics and governance. It doesn't just point out the cracks-it offers fresh, actionable ideas and a living framework for experimentation. At the center is the bold concept of Merit Democracy-a new vision for governance that's as dynamic, transparent, and participatory as the world demands. It's not a final answer, but a powerful spark. This book got my wheels turning-and it will do the same for anyone ready to help democracy catch up with the future." -LISA WITTER, CEO, Apolitical Foundation

ERDEM OVACIK is the Co-founder of Donkey Republic, the world's first app-based bike share. He is a vocal advocate for more sustainable mobility. Ovacik holds a master's degree in public policy and is a social entrepreneur on a mission to bring humanity onto a path of sustainable growth. He has worked with direct democracy initiatives, outcome-based payment schemes, and micro-loan organizations in Africa.

Introduction 1 Chapter 1 Exodus From Populism 7 The Growing Mistrust in Public Governance 15 Digging Into the Representation Problem 24 Qualities of Good Governance 32 Excessive Inequality Undermines Democracy 41 Public Goods: What Money Can't Buy 50 When Money No Longer Means Value 55 Tech Will Save Us: The Tech-Naive Story 58 Filling the Void? Charity, Impact-investing, Corporate Social Responsibility 64 Our Four Economic Hats: The Consumer, Investor, Laborer, and the Citizen 70 Chapter 2 Democracy's Crossroads: Innovate Or Die 75 Innovating Companies Win, Big Time 80 Evolution Thrives with Experimentation 82 Getting Innovation into the Government 86 Dystopian Outcomes of Dysfunctional Democracies 94 Chapter 3 Brewing Change for Legislation 97 Experiments with Voting 101 Participatory Budgeting 104 Citizen Assemblies 107 Digital Changemakers from WikiLeaks to Liquid Democracy 110 DAOs - Decentralized Autonomous Organizations 114 Chapter 4 The Struggle to Deliver Public Goods 121 How Did We Get Here? 124 From Leading to Fire-fighting 127 The Move Toward Privatization 129 Rethinking Public Procurement 131 Efficient but Not Effective 133 Buying Goods from Companies Based on Outcomes 135 Pricing What Matters 139 Beyond ESG and CSRD 143 Chapter 5 Merit Democracy: the Way Forward 147 Holding Ourselves Accountable 150 Experimenting Over Forecasting 152 Embracing Markets for Public Goods 159 Empowering Public Goods with (Big) Data 164 Transparency Breeds Legitimacy 167 An Open and Inclusive Design 169 Chapter 6 Merit Democracy in a Bicycle 173 The Front Wheel: Legislation in Merit Democracy 176 Betting Can Save Our Democracy 178 The Economy of Citizen Credits 185 Legitimacy Through (Liquid) Voting 190 Measurement as Underlying Enabler 195 Envisioning a Policy Market to Overcome Loneliness 197 The Back Wheel: Delivery of Public Goods in Merit Democracy 200 Money-Value Alignment 200 Unleashing New Business Models 205 How to Fund Public Goods 208 Envisioning a Mobility Impact Market to Overcoming Car Dependency 210 Envisioning a Media Impact Market to Overcome Click Bait Culture 214 The Handlebar: Taking Ownership of Our Challenges 217 City, National/Federal, Global 220 The Bike Frame: Role of State in Merit Democracy 224 Chapter 7 Reasons to Remain Cautious 227 Digital Literacy and Access 228 Losing the Personal Touch 229 Limits to Measuring 230 We Should Focus on Degrowth 233 Fighting the Enemy Is Priority 234 Prone to Manipulation 236 Privacy and Data Safety 237 Trapped in Siloed Thinking 238 Experimentation Is Well Worth the Risks 239 Chapter 8 The Mission Ahead: Bend Not Break 243 Change from Within 246 Digital-born Alternatives 251 But What Can I Do? 252 Getting Political 256 One Day in Not So Distant Future 259 Notes 265 References 267 Index 279