Point 1 tends to fall apart when the government can't control its own coffers and after a few decades of mismanagement decides that privatisation is the main wa

Point 1 tends to fall apart when the government can't control its own coffers and after a few decades of mismanagement decides that privatisation is the main way to reduce their debt burden. So I think this one ebbs and flows over time generally. See South Africa for an example. Power production is slowly opening up to market forces as an alleviation to the extreme mismanagement and corruption of the last 2-3 decades. On the other hand, there are also some alternatives, like "devolution" of state services to the provincial or municipal level. The local Cape Town government is busy trying to gain control over the city's train lines from the government org that owns them, to provide better service.