Well, the chinese model tells you different. Yes, there is competition, but under the control of the state. Because corporations or companies only have their own best in mind, not the best for the population. China has eradicated poverty, created the most modern infrastructure in the world, built the most efficient corporations in the world, attracted the brightest minds, and has the highest rate of innovation. All under the control of a state system that organizes the development of the entire country with long-term plans.

I am not saying that China is the model for success for the USA, or even for the EU, because China has a very different culture and history. But it shows that the concept of the "small state" is not a recipe for success for the whole world. On the contrary. When such a concept is applied to emerging countries, the logical result is what was observed in Russia after the dissolution of the Soviet Union: impoverishment of the masses, enrichment of the few, neglect of infrastructure, dissolution of a country's autonomy.