Direct democracy doesn't work.
This way voter representation is on the scale of the locality. It would encourage factoring in the needs of all citizens within that economic zone, instead of factions of shards that battle each other.
But California seems to do OK according to my metrics: higher GDP per capita and life expectancy that the average in USA. What makes you feel California as a failure?
But well, we have a proven implementation at 8 million people. Let's promote it to all countries of that size or smaller then.