That was Libya. They had that exact system.

The "remaking of Libyan society" contained in Gaddafi's ideological visions began to be put into practice formally in 1973, with a cultural revolution. This revolution was designed to create bureaucratic efficiency, public interest and participation in the subnational governmental system, and national political coordination. In an attempt to instill revolutionary fervor into his compatriots and to involve large numbers of them in political affairs, Gaddafi urged them to challenge traditional authority and to take over and run government organs themselves. The instrument for doing this was the people's committee. Within a few months, such committees were found all across Libya. They were functionally and geographically based, and eventually became responsible for local and regional administration.

People's committees were established in such widely divergent organizations as universities, private business firms, government bureaucracies, and the broadcast media. Geographically based committees were formed at the governorate, municipal, and zone (lowest) levels. Seats on the people's committees at the zone level were filled by direct popular election; members so elected could then be selected for service at higher levels. By mid-1973 estimates of the number of people's committees ranged above 2,000. In the scope of their administrative and regulatory tasks and the method of their members' selection, the people's committees purportedly embodied the concept of direct democracy that Gaddafi propounded in the first volume of The Green Book, which appeared in 1976. The same concept lay behind proposals to create a new political structure composed of "people's congresses". The centerpiece of the new system was the General People's Congress (GPC), a national representative body intended to replace the RCC.