[vezzy-fnord]

most important problems, like climate change, energy crisis, poverty or education, are of this type - for which both democratic governments and free markets fail spectacularly.

Countries with democratic governments generally do not have free markets. Don't butcher the term's meaning.

(In fact, there is evidence that markets, free or otherwise, do advance education. Alternative educational institutions like Montessori, Sudbury, Summerhill and democratic schools tend to be private.)

"Poverty" also isn't what it used to be for many in both First and Second World countries, unless you're extremely myopic.