I agree that some form of government is inevitable, so its probably a good idea to figure out how to form a government that is at least somewhat effective, minimally intrusive and relatively cheap. So far, that's proven to be a pretty tall order, and I'm doubtful if it can be achieved on a large scale for more than one generation.
I haven't travelled the world to see how things work everywhere else, so maybe some little country somewhere has it figured out, but I'd be surprised.
The problem is, was and always will be human nature. Those most desiring power will always be attracted to positions in government. People are largely vindictive, greedy and gullible, and therefore easily manipulated by anyone promising them an advantage over their neighbor or to punish and restrict the freedom of a people who they don't like. The most power hungry people who are smart enough to be good manipulators and ruthless enough to step on whomever they need to in order to climb the ladder inevitably arrive at the top, so in short order you have mostly the very worst candidates possible filling all the most important positions of power. The results of that aren't hard to figure out.
