Of course government has competition. In Latin America governments go out of business every decade or two. In other parts of the world it takes a few hundred years... like in this country where the King of England and Parliament were forcibly shut down and replaced with a new one. Same thing happened in France not too long after. As a result the English government more gradually changed to better match the competition.
I seem to recall a government in the southern part of the US replacing the Federal government only to be evicted and the USA reinstated.