The problems are two fold. The first is vetoing of bad ideas. No leader is right 100% of the time, and when they are wrong, someone must have the power to veto. There must be some way for reason to triumph over power, and a leader who chooses to be responsible is capable of deferring to expertise.
The second is succession. A good leader today may be succeeded by rotten leader tomorrow, but both have the same legitimacy, because the legitimacy comes from power alone and not reason.
> effective, competent, just, or free of corruption.
These things are a result of culture, not a result of the government itself. The government influences culture, but they are first and foremost functions of culture, specifically a culture of tolerating speaking truth to power, dissent, critical thinking, tolerance, and solidarity.