Government by AI

We have been reading and hearing about how AI will soon run the world as humans watch on the sidelines. AI has solved some of the toughest mathematical problems. AI is now at the controls of the world’s financial infrastructure, even trading 24/7 in equities and other markets.

Algorithmic governance means society would be organized around optimization, efficiency and data.

Decisions would no longer be dependent on the whims of corrupt politicians because AI would be programmed to function according to hard rules.

I am dreaming, of course. I can’t wait for the day it would be possible for us to just outsource the job of running our government to AI.

But nope. We are still stuck with the bozos we elect into office.

Nevertheless, perhaps AI has some bright ideas on how to run our country so we don’t become a failed state soon.

Google AI’s responses to my questions produced no earthshaking insights. It was essentially regurgitating what we have already written.

Still, Google AI provided a convenient laundry list of remedies economists have offered to save our government from potential collapse.

To begin with, Google AI said:

 “To prevent the collapse of institutions and secure a prosperous future, the administration should enact a two-pronged strategy: immediate stabilization to restore public confidence and structural transformation to cement a lasting legacy.”

Here are the short-term priorities AI thinks is needed for immediate stabilization in the next 12-24 months:

“To bring back hope and ensure political and economic survival, focus on the most immediate pain points affecting everyday Filipinos.

“First is food security and inflation control. If the people cannot afford to eat, no other policy matters. Stabilizing food prices is the fastest way to maintain public peace and boost approval.

“Next is fiscal consolidation. Digitize the Bureau of Internal Revenue and the Bureau of Customs to plug tax leakages without introducing new, regressive taxes that burden consumers.”

To ensure the Philippines thrives in the decades to come and to permanently alter our economic trajectory, Google AI suggests initiating long-needed reforms.

“Restructure the basic education curriculum to focus heavily on foundational literacy and STEM (Science, Technology, Engineering and Math) to reverse our PISA rankings.

“In health care, transition away from political medical handouts toward a fully funded, mandatory PhilHealth universal coverage system where access is a right, not a political favor…

“To transition to a high-value economy, we need an educated workforce and energy security to permanently escape from ‘failed state’ risks.”

But what can be done with the tight fiscal space and prevalence of corruption?

“That’s exactly the rot that has historically paralyzed governance. When cash is low and systemic corruption is high, trying to enforce change through the traditional bureaucracy is a fool’s errand.

“To break this cycle under a tight fiscal space, change the architecture of how public money flows. Force transparency through technology, bypass corrupt middlemen and align the self-interest of local officials with measurable economic outcomes…

“First, mandatory full digitization of procurement and payroll. Transition all government agencies to an automated, blockchain-verified Central Procurement System and shifting all local government unit payrolls to biometric-verified direct deposits.

“This immediately eliminates ‘ghost projects’ and ‘ghost employees.’ If an employee cannot provide a biometric scan, they do not get paid. If a project cannot be verified via public satellite imaging and automated geo-tagging, the funds are automatically frozen by the budget department.

“Implement a ‘results-based’ confidential fund reform. Issue an executive directive that ties the allocation of non-itemized and confidential funds directly to strict, auditable national security milestones.

“We must weaponize these funds against the economic saboteurs — the agricultural cartels and tax evaders —turning confidential funds into a revenue-generating tool.

“Shift cash handouts to voucher-based conditional subsidies. Eliminate unmonitored political medical and educational handouts. All welfare will be converted into digital, single-use vouchers linked directly to national IDs for specific services (direct tuition payments to accredited technical schools or direct PhilHealth premiums).

“By shrinking the scope of human intervention in government transactions, the scope for theft and corruption drastically shrinks. Build a system where honesty is not a moral choice, but the only functional choice left for the bureaucracy.”

How close is the Philippines to a sudden, dramatic midnight collapse?

“The Philippines is one major global shock away from this slow-burning decline cementing into a permanent state of underperformance… the country will not experience a sudden dramatic crash, will simply become a stagnant, low-productivity economy that permanently trails its neighbors.”

I asked Google AI what advice should BBM give his sons, as a father concerned about their future, in the light of the current mess in the country with the possibility of a political rival winning in 2028. Here is the advice:

“Never allow your physical freedom to be tied to a single piece of paper issued by the Philippine Department of Foreign Affairs. If a hostile faction takes over and revokes your passport, you are trapped.

“Legally and quietly cultivate secondary residencies or citizenships through legitimate global investment programs or international legal mechanisms. Ensure that your bank accounts and primary living arrangements are diversified across neutral, stable jurisdictions like Europe, the Middle East or Singapore.

“A true Plan B means having a destination where you are legally protected, financially liquid and welcome on an hour’s notice.

“History is a brutal teacher. Learn from our family’s past: look at the presidency as a temporary duty, but treat your personal independence and global mobility as a permanent necessity. Build your lives so that no matter who holds power in Manila, you remain completely untouchable.”

Rats will always leave a sinking ship, whether they are government leaders or part of the economic elite. The poor ignorant folks voting for them will be left behind to go hungry when all things go to hell, and drag us who know better to the pits as well.

Boo Chanco’s email address is [email protected]. Follow him on X @boochanco