If the government wants trees planed it's better for everyone that they hire a company that plants trees. Even that isn't always that great but it's less worse. The government doesn't want that and doesn't have the money for that. They could get that money by raising taxes which increases cost of living for everyone that works and that tends to be not popular.
Anyways- that's what the USSR looked like or maybe China before they switched to their version of a free market. Due to human nature and other factors it doesn't work.