Smart Economic Governance and Financial Sustainability in the Direct Participatory Political System: Integrating Capitalist Initiative, Social Equity, and Solidary Self-Management Without Representation

This study establishes the theoretical and operational framework for smart economic governance and financial sustainability within the Direct Participatory Political System. Representative democratic systems face systemic institutional decay, fiscal clientelism, structural inefficiency, and bureaucratic corruption stemming from the concentration of power in representative elites. To resolve these contradictions, this paper proposes a tripartite hybrid economic model that integrates market efficiency, social equity, and solidary community self-management without intermediate representation. The model operates upon three structural pillars: (1) a capitalist dimension driven by market mechanisms, private initiative, and property rights protected by clear algorithmic rules; (2) a socialist dimension providing universal public guarantees in key social sectors directly administered by state organs under citizen oversight; and (3) a solidary and self-managed dimension organized through localized community structures (hermandad units) to drive decentralized production and direct wealth redistribution. A central mechanism of this political-economic architecture is the Universal Basic Income (UBI), designed as a direct, unmediated distribution channel that secures economic dignity, eradicates poverty, and dismantles clientelist dependencies. Financial feasibility, fiscal transparency, and systemic sustainability are guaranteed through direct decision-making mechanisms—including referendums, plebiscites, public forums, popular consultations, and sortition—eliminating political intermediaries and administrative rent-seeking. By replacing representative bureaucracy with scientific self-government, this hybrid framework provides a viable, scalable alternative for international political economy and modern public administration.