It’s not a matter of governance/no governance. Society is governed by a vast array or organizations such families, clubs, businesses, charities, community organizations and the norms that arise from their interactions.

The real concern is the dynamics of these institutions. Can they adapt to changing circumstances quickly, can people hold them accountable with voice and exit, and are their alternatives when they fail. Government often fails all three of these tests.

To the extent that governments decide rules they should only handle the rules that should never or very rarely change because that will be the result. As a Libertarian, the areas of governance that don’t need adaptation, accountability and alternatives is SMALL.