Imagine the Cloud State (Consolidated PSP)
The cloud state model replaces services provided by the government with Public Service Providers (PSP), not a local government (Administrative Region). Instead of elected representatives administering public services funded by taxes, a fee is paid directly to a Public Service Provider. Note that the regulatory function of the government is separated from the public services function.
In the cloud state, the body of elected officials acting as middlemen is eliminated. As an example, State-X, a hypothetical public service provider, provides a package of services including sanitation, pension management, healthcare services, legal services, education, etc. The standard charge for these services is $1,000 US a month, with a variety of options and packages to choose from. State-X is in competition with PubServ-4U, another hypothetical public service provider, which would offer a similar variety of services at $975 US a month.
It should be noted that Public Service Providers would be regulated (by a regional regulatory consortium) just as private businesses currently are in most parts of the world. Services could be offered at sliding pricing tiers dependent on a customer’s income level, wealth level, or combination of factors. A sliding scale fee system helps manage the absence of a public social safety net, where providers would be required to subsidize lower income customer fees with higher income customer fees as per the Regional Regulatory Consortium. Additionally, this helps address regressive tax effects present in certain nations under the nation-state regime.