The problem: good intentions, captured systems
Consider a subsidy meant for farmers. The application demands three trips to the city, a file only an intermediary knows how to complete, and payment delayed by months. The small farmer sells the claim at a discount. The intermediary collects. The report still says “farmers supported.”
Do not ask what a program intends. Ask who gets paid, when, for what measurable event, and who pays when nothing happens. When the answers point to intermediaries and gatekeepers, the program is working — for them.
The principle: change the payoff, not just the speech
Every reform must name the current payoff and the new payoff in one table. Three moves recur: pay for outcomes, publish the spread, shorten the settlement. Pay clinics for verified outcomes. Publish the farm-gate to retail gap weekly. Settle small suppliers in days with automatic penalties for late state payments.
Incentives also govern the state itself. So the internal incentives are rewritten first: reward early disclosure, reward cancelled bad projects, reward measurable citizen time saved.
The program: three measurable commitments
- 1. Outcome payments for frontline services. Shift 30 percent of qualifying budgets from activity reporting to verified outcomes within two years, published monthly.
- 2. A public margin watch. Weekly farm-gate, wholesale, and retail prices for the 15 most-consumed products. First bulletin in 90 days, open data and SMS in 180 days.
- 3. Pay small suppliers in 15 days, automatically. All state payments to firms under 50 employees settle within 15 days, with late interest paid automatically. 90 percent on-time year one, 98 percent year two.
What this builds
When incentives point the right way, virtue becomes unnecessary and vice becomes unprofitable. This is mechanism design applied to the republic: make the right action the easy action, and the wrong action the expensive one.
Do not trust his heart — trust the table he publishes. Read it monthly. That is how a left politics stops describing exploitation and starts repricing it out of existence.