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Biometric identity management.

You need a single namespace for human beings, which is cryptographically protected so that the only entity which can link a person's reputation to their biometric profile is a court of law. When there can only be one of something - and there are good reasons for not federating biometrics databases - then it makes sense for the government to offer that service, rather than private enterprise.

On top of this, build a contract infrastructure - a set of technical standards for digitally signed contracts - this could be free market, but the standards body should again be unitary, so that contract standards are singular. Hence, the standards body is quasi-governmental.

This is infrastructure which is essential to commerce, but - because of the namespace issues - it cannot be entirely provided by the free market, which would naturally tend to fragment the namespace. You can see an entire parallel chain of development with DNS.

Power grid: do not offer, do not want. http://smallisprofitable.org

Similar approaches for water supply and sewage treatment: set standards for those offering the services, sue those who fall below those standards, leave it to the market. This stuff used to be unitary-provider 200 years ago, which is why govt. still does it now, but technology has moved on.

I have a couple of not-read-for-prime-time papers on the concept I've been working on for disaster relief called "State In A Box" that I can pass along if you are interested: hexayurt@gmail.com http://hexayurt.com/




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