This leads us to the question: what is the optimal or preferred type of government/state we need?
Discussion
There is no name for it.
Monarchy or Anarchy.
I would say a limited government, similar to the model of the Prophet (pbuh) and the four Caliphs. I don’t think most people would accept monarchy, and full anarchy doesn’t seem practical either, since such couldn’t defend themselves against external organized states.
A state with limited reach.