As the Internet becomes more widespread and its uses increase, it's clear it could also be used to redesign government at a time when public dissatisfaction with it is at an all time high. But the existing system has great difficulty reforming itself. Politicians promise change but seldom achieve it. The problems are steadily increasing and are not being adequately addressed, threatening sustainability. Currently, the major problem is the Great Recession to which the current response is totally inadequate. The people need to be thoroughly involved in the solution as they are the ones who will implement it.
Government can now be reformed initially by E-initiative, referendum and recall (E-I,R&R) as well as by conventional ballot I,R&R. People can be fully informed about all problems online, discuss solutions, launch petitions, simulate probable outcomes, benefit/cost analyze them and vote on them either online or by conventional ballot as and when they prefer. The best world, nation and state design can be thus achieved and citizen satisfaction optimized.
A good place to begin E-I, R&R would be in California which already has an I, R&R system that's often used. It is not sufficient to overcome the states problems, however, due to difficulty in petition signature gathering. Paid signature gatherers are usually required and only the special interests causing the problems in the first place can afford them. Taking the process online in addition to the existing process would make both filing petitions and gathering signatures online much easier and open the process to all citizens. Here's an online petition to do that: http://www.ipetitions.com/petition/ReDCAonline/?e_
Examples of online E-Democracy petitions