Well, on a local level I would have people relavant to something (Fire fighters.) elect an official (Fire Chief.) who would then serve on a council where other people who help the city/district/town discuss problems and solutions. On a national level I would have the same thing but the entire population, with several non-biased pamphlets passed out, would vote. Once all national officials are elected, one is elected by all the people in the local level government to become an international leader, rather like the Hedgemon in Orson Scott Card's fictional universe.
On the subject of economy, it is unregulated.
As for schools, they are tiered based on intelligence and acomplishment, and at any time one may quit for a low paying job.
My idea is the only laws are no hurting/stealing from others. All religious groups should be separated to avoid wars, and companies are controlled by the government.
So discrimination is legal? I think you should be a little in-depth in something like this.