While I appreciate your sentiment in this article and agree with your point, your claim that self-policing does not work is just flat wrong.
- Nobel-prize recipient (Economics) Elinor Ostrom made her career documenting and publishing examples of self-policed commons-management, i.e. self-management that does not rely on either the market or the state, so cf. her entire body of work.
- The Internet as an example of the success of open-source collaboration is another example, cf. Yochai Benkler on “commons-based peer-production” e.g. Coase’s Penguin, or Eric Raymond’s “Cathedral and the Bazaar,” or Steven Weber “The Success of Open Source,” etc. etc.
- Global Governance has only self-policing because it is an international cooperation among states with no over-arching authority (cf. Axelrod’s “Cooperation Under Anarchy” and pretty much all of the literature on international cooperation.
- Ellickson’s work on communities that self-police because reliance on the state is too costly; the list goes on.
- A glimpse into the genre can be found in all of the academic research documented at http://cooperationcommons.com