Thanks, not so much the problem with statism, more human nature. I agree that people give their individual power away to government and governments can then abuse this power. That's why a voluntary government with complete transparency and voluntary taxes would be the most peaceful rather than an entity that rules by force.

However, since government is made up of people I think it is a reflection of the state of consciousness of society at the time (just like how in the past people believed it was normal to be ruled by an individual king or queen rather than what we have today).

It seems part of nature for hierarchies to form so it's likely that there will always be people that are told by people in positions of more power what to do, but maybe it's about finding ways of minimizing corruption and abuse within this structure? The other problem with extreme capitalism and free markets is that people would be seen as stock without human rights and work ends up going to those that would do it cheaply in third world countries.

If someone within the society murders someone else what can people do if they have to respect the principle of self ownership? How does society settle on important decisions? (maybe that's why small transparent governments would be better?).

I think if there was a universal awakening that led to world-wide peace it would work and people would realize they can govern themselves and not be governed but until then maybe we're at the right stage in society's development. Ego always seeks control with more power, so the more ego can be dissolved within a society the more peace it would bring.