There is such a thing as state capacity. Fundamentally, it is the ability of governments to effectively implement their policies and achieve their goals. Countries can improve their state capacity by building quality institutions that effectively collect taxes, prevent border conflicts and insurgencies or ensure honesty in her public servants. This is, of course, just a few ways state capacity improves. By improving state capacity, states hit their economic growth goals and are able to increase GDP per capita. In general, increasing productivity increases the prosperity of her citizens. As we usher in the new year, I was thinking about this as a framework for improving prosperity in my life. Who doesn’t love yet another list titled “Here are 6 ways you can dramatically improve your productivity this year!”
So I will not be doing that. But, I will give you a framework to think with. You should determine what your state capacity is at currently and what you can do to improve it, if you so wish to. Some of my other influences in thinking about this were some outstanding individuals around me. I have always looked at some individuals and thought to myself, wow. This individual has 29 hours in a day. They get so much done! Be it pursuing side projects, hobbies, playing a sport or more mundane tasks like grocery shopping, laundry, cooking and cleaning. They do it all. High state capacity. High productivity. Surely they have built high quality institutions in their life that allow them to achieve what they set out to do. This immediately made me want to evaluate and improve my state capacity.
Let’s examine some of the methods by which countries can become more productive and draw parallels to my own life. Firstly, states need the rule of law. Clear and non-arbitrary rules codified in a sacred document such as the constitution allows for consistent enforcement. In my life, I can create a set of rules, such as not bringing work back home on a weekday or setting aside time for chores on a weekend. I can also build repeatable habits such as sticking to a meal plan or a workout plan. Like any good state machinery allows for amendments to the constitution, I must too allow for my rules or habits to change as the years go by. It must be a living document. Priorities change. However, this should be done sparingly and with much thought. Next, states need an effective bureaucracy. There are hundreds and thousands of civil servants who work tirelessly to ensure the efficient functioning of the government. This bureaucracy must be a meritocracy and must also be intellectually curious. In my own life, I can play to our strengths by engaging in work, hobbies or sports that I am already good at (or the friction to get better is minimal). I must also constantly learn. I cannot overstate the importance of this. Upskilling and broadening my reading allows me to learn new frameworks or see the world through new lenses. Then, states need to build an effective tax collection machinery. Consistent revenue ensures governments’ ability to invest in large public infrastructure and service projects. In my own life, I can be more mindful of how I account for my “currency” - time and energy. I treat good sleep (and good sleep hygiene) and good nutrition as non-negotiables. I can eliminate time and energy drains such as scrolling and use this for larger, more high value activities. States also need a monopoly on force. They need a reliable way of implementing the rule of law and trying the citizens that fail to. In my own life, I need to define clear consequences of not following my set of rules. It can be as simple as running double the miles the next day if I fail to run my prescribed miles for the day. However, I believe positive reinforcements work better when compared to negative reinforcements. For the self, not the state, unfortunately. Finally, states need information capacity. This means states need a fairly accurate way of measuring its population flux, land ownerships, policy outcomes etc. These institutions help by providing feedback to the administration. As Lord Kelvin said, if you can not measure it, you cannot improve it. In my own life, I can measure and track outcomes of new rules. I can pay attention to certain indicators such as happiness, energy and satisfaction. By constantly reviewing this information, I can make marginal course corrections as the need arises.
I am a constant work in progress. This thinking exercise has been valuable and I hope to implement some, if not all the above mentioned institution strengthening measures, this year.