[JacobLBryan]

It probably does lose out on some coordination efficiency that a hypothetical world government could achieve, but in today's world governments have a mandate to care for their own citizens before others, which means that first world governments miss out on the incredibly cheap interventions in the developing world. For example, the NHS in Britain will spend as much as £30,000 to provide a QALY (Quality Adjusted Life Year), when a similar year of life in the developing world can be provided for £50 at a conservative estimate.