I wonder how are you going to sustain all that police state if your citizens are dumb like chicken and even if they work all day they barely do tiny fraction of the work which is done in western society.
You will not collect enuogh funds to pay to police. unless you probably have huge oil or other stuff deposits and sell that
Hand picking people does not work in practice neither there can be any loyalty tests.


If I was dictator I wold do exact opposite I woud give nearly total freedom for everyone but also I woud maintain total surveillance so while you can do pretty much anything you want if you do some harm you get what you deserve

Amount of freedom to break the law woud be dependent on the status where smart people who can do innovations and discoveries woud be almost totally untouchable by police unless they do some severe damage and they woud get priority over simple citizens.

This would start from the school where smart kids would be immediately awarded by various privileges up to the ability to control whole class and decide rewards and punishments of stupid kids or even make them do whatever they want.
Of course this woud continue as they grow where smartest people woud get to control everything.

This system would ensure that my state woud stay on the top with newest technology and science.

Unlike most other societies that are built on lies and delusions I would teach my citizens truth about society politic and government along with the usual lies and propaganda.
demanding to live them if half virtual reality where you say one thing while you believe something else.
I woud bring that to the level of sarcasm where everyone woud be required to praise and worship government all time in same way like in north Korea.

To make life more interesting I would all lots of stupid laws with very tiny penalties just to give people opportunity to break them.

People who oppose me woud be given chance to take my place as dictator until they find out that they cant do anything better.