How much power should governments have?

I would say that moderate socialism, which is in between brute capitalism and communism, is for now the best organization solution for big human societies (being all pretty bad solutions). A government has been proven to be indispensable in examples like the existence of police, where there is no other way of maintaining a low crime rate. However, I advocate for the idea of not directly controlling everything. For example, instead of directly setting all prices, governments have set up a suitable environment so that the prices are what people agree to pay for (Tacher and Regan's revolution). The scientific term for that is emergence and I strongly believe that it will lead to a new organization structure in not so much time. The question is, could you suggest a way some duty from your government could be covered by a smaller and more local citizen representative, or ultimately by individual interactior throughout, let's say, internet?