Governments compete all the time. If you don't like the way California incorporation works, you can incorporate in Delaware. Even better is the way the Swiss

Governments compete all the time. If you don't like the way California incorporation works, you can incorporate in Delaware. Even better is the way the Swiss do it. If you don't like the canton you're in, you and your neighbors can join a different one or start your own. It rarely happens, but the fact that it can keeps government responsive. Of course, decisions there are mostly done by referendum anyway, so its hard for government to get far from the people.