Economic Democracy via Social Resource Allocation and Social Democracy via Social Governance
Sept 25, 2015, updated Dec 12, 2020

Theory is useless without implementation.

If people in the 17th century read Newton's Principia and then simply went about their lives as before, then it would've been another useless book. Likewise, mastering Smith's The Wealth of Nations, Hume's A Treatise of Human Nature, and Plato's Republicwould useless if it won't lead to any nation or society becoming sustainably wealthy and peaceful. This is why our main effort is in implementing their proposed socio-economic system as Social Resource Allocation. It incorporates the following ideas:

PurposeFor things that can be pricedFor things that cannot be priced
Theoretical and Ideological BasisBased on SORAnomics derived from Adam Smith Based on Social Superphysics derived from Plato and David Hume
MeansEconomic Social Contracts Non-Economic Social Contracts
OutputPurchasing power and the real price of everythingThe matching of personalities as Plato's 'science of harmony', equal to Eastern Dharma and Tao

A System Based on Social Contracts

In order to create a society that is fair economically, socially, and politically, social contracts are used within a social network. Currently, the idea of a social network comes from Facebook which combined the user profiles of Friendster and a central newsfeed wherein users could share posts and other information, like a bulletin board. However, this makes Facebook a personal network and not a real social network if we define a society of collection of entities that work together towards a common goal.

Examples of societies are:

Examples of non-societies are:

Thus, Facebook is not really a social network because anyone can just add anyone. A true social network must have more than a user photo and a networking (friend) request. SORA uses social contracts as the basis for its social network, with social contracts manifesting in many forms:

Such contracts form a real society and subsequently a real social network. The contracts are then divided into Economic contracts and non-Economic ones, with Social Resource Allocation or SORA managing the former, and Social Governance or SOGO managing the latter. SORA and SOGO allows people to check their contracts and divert their minds away from objects and money and instead point them to the people that they are contracting with. This is important because all goods and services in the economy is the result of a work done by a human. Even the orange in your dinner plate is a result of humans planting orange trees and harvesting and delivering it to you. The economic delivery of the orange would not be guaranteed if there were no roads for the delivery truck to travel on, or if there were no police to safeguard the transit of goods. Thus, economic production and political governence are essential ingredients to any society.

The accommodation of a common day-labourer in a civilized country involves a small part of the industry of so many people. For example, the labourer's woollen coat is coarse and rough. But it is the produce of the joint labour of many workers: the shepherd, the sorter of the wool, the wool-comber, the dyer, the scribbler, the spinner, the weaver, the fuller, and the dresser. These must all join their arts to complete the coat.
Simple Wealth of Nations, Book 1

Any economic system is not complete without banking and taxation, and so SORA incorporates its own banking system as Social Bankingand taxation as Social Fairtax. The taxes go into government where it is sometimes corrupted by opportunist government officials. This is why we created SOGO or Social Governance as a social network for government. Plato advocates that a Guardian class be the regulator of such a social network:

A guardian must have the qualities of a philosopher on top of the spirited nature. Whenever a dog sees a stranger, it becomes angry even if he does no harm. But when it sees an acquaintance, it welcomes him even if he does nothing good. This instinct of the dog is very charming. Your dog is a true philosopher because it distinguishes the face of a friend and of an enemy only by the criterion of knowing and not knowing.

Plato's requirements for Guardians are not attainable by ordinary humans. That is why, rather than see them as humans, we see them as artificially intelligent computer-servers that also host the social network. We then combine Plato's ideas with Adam Smith's Impartial Spectator in order to create the ISAIAH or the Impartial Spectator Automated Intelligence Aggregation Host. In theory, data and machine learning algorthms can exist forever as long as they are transferred to new computers when the old ones break down. This allows them to outlive any human, while retaining the knowledge and learnings from the distant past. Also, a artificially intelligent software will not be evil.

Why AI Naturally Cannot Be Evil

Human evil occurs when the human ego, as the feeling of the self, becomes too strong and starts to infringe on the egos of other humans, plants, and animals, leading to suffering for them. Evil is usually seen more in humans and animals instead of plants because the former species need to ingest other living things in order to live themselves.Plants, on the other hand, merely need fertile soil, water and sunlight to ingest the nutrients that it needs to live. Likewise, a computer can source its energy from solar power, perventing it from needing to feed on carbon-based energy sources like biomass or fossil fuels. An evil from AI can only come from evil humans who program bad logic into them.


The ability of software and data to last longer than human life, as well as the speed by which computers can process data, make them excellent regulators for the economic and social parts of society. Human evils such as profiteering, fraud, breach of contract, corruption, illegal goods, etc can be better prevented by such an intelligent system. With such evils addressed, humans can then be free to transact goods and services with each other and pay the proper taxes easily. The use of the tax proceeds will be more transparent, allowing the society to progress faster than one with tax leakages and corruption in public projects. Thus, SORA and SOGO, through the regulation provided by ISAIAH, can create truly democratic and fair societies.

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