I personally don't believe we can solve the "problem of government" until we somehow rid ourselves of the highly suggestible "masses". Which of course, is impossible. I've just come to accept the fact that governments forming, growing, and then falling, is just a cyclic fact of human society.
One could also draw the conclussion that the world itself does exist in anarchy, however all property is controlled by extremely large force-exerting companies.
However, don't take all of this as defeatist... one must still fight to reduce the size of government. I personally love the idea of a truly free market, but I don't see it as sustainable. Hell, I just look at Eve Online (
www.eve-online.com). All the space outside the non-player areas started out unconquered (much like the frontier in the 'old west'). For quite some time, people shared the space and traded freely. Eventually large alliances of literally thousands of players began to form (after the player population increased greatly), and these alliances started warring, with one taking over large areas of space. You might say "oh its just a game, people wanna pwn people", and I do agree, but I think it makes a good analogy however... I would suggest the mercs over in Iraq see the world in that manner.