>I wish there was a better way to inject free market competition into the government

it's called immigration, people move to states/nations with the best functioning governments if they are allowed free movement. Historically voting with your feet has been the best way to change government. See Illinois and it's massive budget shortfall due to people leaving the state

also look at the Soviet Union which needed border security to keep people IN. The exact opposite situation that the US has, which is that millions of people want to live here through any means necessary