Imagine you are a benevolent dictator. You want your country, and your people to succeed. How can you make that happen? You can’t just order that it be true. The power to coerce your subjects does not create success. In fact, the coercion will get in the way of success.
Choice is the antidote to coercion. As benevolent dictator, you want to allow your subjects choices. Creating a framework that protects choices gives your subjects the confidence that their investment of effort is not wasted. Choices of alternatives by interested participants is the most efficient search algorithm for new and better alternatives. This is evolution of ideas. Survival of the fittest ideas is our method of engineering success.
So as benevolent dictator you want to create as close to a night watchmen state as you feel comfortable with. The farther you are from that, the less confidence your subjects feel in investing effort.
In practical terms, create charter cities: