Because they are following a wrong way of forming a government, one where the rule of men trumps the rule of law. Even then, you can see degree of their progress. NK, with almost mythical god like rule form single person is way worse off than Cuba, where the politburo rules, followed by Iran, where the power is shared by large amount of clergy and secular government.

A good government is quite different than absence of any government, which the anarchist claim would lead to utopia. History and current situation are littered with examples of weak rule of law with practically no government. Why doesn't this fabled anarchist utopia rises there? Why does every time there is a power vacuum, some local warlord arises to fill in the gap? Why don't these mythical "good humans" just learn to live without ruling other and being ruled .... just as proposed by anarchist/libertarians?

I have given you examples of good working government, and pointed out what I don't consider to be the proper idea of government. Provide me with evidence of your utopias.