So what is government? Very simply, it is an agency of coercion. Of course, there are other agencies of coercion—such as the Mafia. So to be more precise, government is the agency of coercion that has flags in front of its offices. Or to put it another way, government is society's dominant producer of coercion. The Mafia and independent bandits are merely fringe competitors—seeking to take advantage of the niches and nooks neglected by the government.

Part One, chapter 2, page 12 - Why Government Doesn't Work (1996)