States as efficient social structures are a dying breed.
The best thing states can do is graceful degradation.
States (as known today) are social structures which claim monopoly on the use force. Out of this monopoly, many other monopolies arise. Because of this, we can look at states as aggregates of monopolies.
What is wrong with the state structure? Exactly the same thing that defines it: monopoly on force.
The state structure is very powerful, inflexible, and static. Therefore, it becomes an easy target for abuse and corruption.
A state structure almost immediately becomes the antithesis of the "for the good of all" vision it was constructed for.
What can a state do?
States grew from nations, which grew from national identity, which grew from language.
The best thing a state can do is to return is to return to its roots: to become a carrier of communication.
A state should one by one absolve its monopolies, and remove power from its structure - and the power it can't remove should be decentralized completely.
If all the power from monopolies is removed, what is left?
The answer is: monopolies that have no power. Completely transparent languages, protocols, standards - places and channels of communication.
Establishing, maintaining, and developing transparent communication is the highest and most important thing a social organization can do.
(In the context of warfare, this most basic social infrastructure can and should serve as the passive component of corporate sabotage - corporations being the places the power has moved to.)
Apart from power, the greatest obstacle states have is the non-separation of state and morality.
The non-separation of state and morality serves as a block for the general population to gain clarity of the workings of a state. It produces delusions such as laws being equated with justice, or that rights (or lack thereof) exist.
Laws lie in the domain of what's efficient at large, while morality lies in the domain of personal responsibility. Without this block, laws could gain their proper place as organizational guidelines.
In summary, the phrase to remember is "graceful degradation".