I feel a little responsible for this line of conversation... I kinda started it all with that reference to the "corporations will rule the world" bit. That's an actual argument I got once, and while it's already been satisfactorily answered, that answer opened up this can of worms, so I'll start my answering here.
The world will be ruled by companies, and companies are smart enough to know that war and crime is bad for business.
The best thing there is for business is when the use of force is placed under an objective system of laws, i.e., a [good] government. So, corporations (and honest people in general) would work to set up a government.
The worst thing there is for business is when the government starts forcing them to pay taxes. Nobody is suggesting that there shouldn't be an objective system of laws, just that said laws shouldn't be created and enforced at the whim of a single, monopolistic entity.
Then how are laws going to be determined and enforced? I'd like to hear about the nuts and bolts of what you're proposing.
Well, the laws we have in place today are the result of a monopoly on justice. Most of those laws, without the monopoly on justice, wouldn't stand. Drug laws, for instance. not everyone agrees that pot is bad for you, so without the monopoly, a ban on marijuana wouldn't be universally enforced. If someone wanted to keep pot out of their private property, that's up to them to decide, and up to them to enforce. Everyone agrees that they would rather not be murdered. Even without a monopoly on justice, murder would still be universally a no-no. Same with other violent crimes. A free-market justice system would be composed of competing arbitration firms deciding cases, rather than a single monolithic "Court system". People would choose the arbitration agency that they trust the most, thus the most trustworthy agencies, with the best policies, would be the most profitable.
Determination of the laws would be primarily case law, with individual incidents providing precedent for later judgments to be based on.
Enforcement is something of a conundrum, because not everyone agrees on what should be done. The question comes down to whether or not retaliatory force is justifiable. If the agency in question considers it to be, then the criminal can expect to be forced to pay back the victim. If the agency in question does not consider retaliatory force to be justifiable, then the criminal can expect to be encouraged to pay back the victim by means of a reputation hit. The agency would likely advertise the criminal's name and face, crime, and lack of restitution. This will reduce the likelihood that others will willingly interact with the criminal, resulting in the criminal being effectively ostracized from polite society. This is a slower method, but is more "humane". Most likely, both means would be used, with retributive force reserved for the more violent and dangerous criminals, and the more humane method used for non-violent crimes, such as breach of contract and the like.
The word he's looking for is companies (that is, groups of individuals working together to make money; nothing more, nothing less). Companies will rule the world, which is a good thing because companies want money, not votes, and the only for them to get money is to provide what people are willing to pay for, as opposed to government's taking people's money by force and spending it on things the people don't necessarily want.
Well, if companies rule the world, they are the government (albeit a non-objective one), and they can take people's money by force.
How? In a free market, no company can force any individual to use them rather than their competitors, and the resulting competition will keep prices down.
Because if the companies are "ruling the world," as you say, then that means they have a monopoly on the use of force, which means they CAN take people's money by force. By the way, no, I don't buy into any of that leftist hogwash that conflates a free market with force which you were addressing in the rest of that paragraph. Presumably, in explaining how the nuts and bolts of the system will work, you will explain why you think that companies can "rule the world" and yet not be able to initiate force against people.
As I said above, this is sort of my fault. I don't believe companies would rule the world. Certainly the corporation, and most likely even the company, as we know it, would cease to exist in a stateless society, and they obviously would not have the monopoly on force required to "rule the world". Any entity who took it upon themselves to try and take over the populace would have a rough time of it, what with the competing defense agencies defending their clients from the would-be State, not to mention the individuals defending themselves. Besides, attack is expensive, in both men and money. Not a smart business move.
Because minimal governments don't tend to stay minimal for very long.
That is fundamentally a cultural problem. It doesn't have to be that way, if the culture improves. Having a stronger constitution can also help a lot, but that's just an implementation concern (i.e. not as fundamental).
I'm inclined to say that it's not a cultural issue, but rather a flaw in the nature of the beast. Any monopoly will naturally seek to expand. A monopoly on violence is uniquely suited to expand in whatever direction it chooses.