We already tried eliminating governments entirely, it was an unmitigated disaster that historians refer to as "The African Holocaust."
https://en.wikipedia.org/wiki/Congo_Free_State
It was also attempted in Hispaniola under the Columbian expeditionary government, and once again it resulted in horrific atrocities at the behest of a mercenary state.
https://en.wikipedia.org/wiki/Viceroy#In_the_Americas
It was also done in India under the rather suggestive rule of the East India Trading company, a corporation sanctioned under the British crown to essentially treat the entire country of India as a privately owned subsidiary.
https://en.wikipedia.org/wiki/East_India_Company#Foothold_in_India
And I would also say that if things seem arbitrary, then it's probably because you haven't investigated them.