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Good things are happening with digital democracy and citizen journalism. I think a model could be developed for crowd-sourcing on military and intelligence tasks as well. The problem is creating a baseline of what is "normal" citizenship, and what is normal for an individual to expect of a state, and vice-versa.
When it became clear to me that the world was going to hell, some decades ago, I began thinking on this. I don't by any means have a complete answer, but I'm working on one, and I do have a tenuous grasp of the problem.
Most of the problems in life come down to technology. The public debate about abortion really took hold following the invention of the birth control pill, a technological advance. Some of this debate probably switched when ultrasound produced images of fetuses with expressions on their faces. Meanwhile, abortion has been going on for millenia, but was never a front burner issue. I'm convinced that the Tea Party movement, and the recent discovery by its proponents of the Constitution, is really about technology. While liberals were horrified by the warrantless wiretapping debacle, conservatives held the line put down by their party, confident that the apparatus would only be used against muslims, black people, and liberals. Now that power has shifted, it has dawned upon them that the apparatus has no political leaning, and that America truly is a democracy when it comes to bugging its citizens.
While self-interested technocrats talk about technology as being liberating, it's actually the opposite. Technology has enabled the oppression of the world we live in. Suicide bombers, for example, were not a recent phenomenon--only the killing power of their weapons changed. I remember reading an account of the seige of Malta in 1503 (?) which was a classic muslim-christian conflict (really about business with a little religion mixed in) between the templars and the Ottomans. Many of the front-line of the muslim attackers, the janissaries--new soldiers--, were essentially suicide bombers, armed with pikes and swords, dressed in the white of their death shrouds. Meanwhile, of course, we have the classic crusader garb of white with a red cross--another group dressed in their death shrouds, demonstrating their dedication, and making it easy for them to be rolled into a ditch during mop up. Jews, apart from being openly slaughtered by Christians at any opportunity, didn't figure into it as enemies of Islam. In fact, after the Jews were ethnically cleansed from Spain a decade earlier, it was the Turks who took them in. I could beat this topic to death, but you get the picture: it's all about technology.
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