Transparency doesn't change the fundamental nature of the State, which is coercion.

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Yes, but they lose the ability to coerce through manipulation and censorship.

A nation state should be coersive based on the values, needs and wants of the people the state is meant to represent.

Screw that

Just localize it. There is a tradeoff. You can go live in the woods by yourself if you want but I'd rather live in a small community of like minded people and to live in our community. The smaller the better obviously, but humans are far more productive working together than seperately.