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I have bad news:
If your government has "private sector" organized crime under control, they have simply taken over the organized crime. Society abhors a vacuum.
That sounds too much of a conspiracy theory to hold any value as an argument.
Are you stating that by default if a nation does not have organized crime, then the state itself is a crime organization?
That implies all individuals within such country are criminals, without excuse or exception.
I mean, a government itself is just a big racketeering scheme, with an anthem and good public support. If you look at how they actually function. Edit: And if you think that's necessary and right or not.
If they took control of whatever smaller racketeering group's operations, then that's just a a new tax, which doesn't really make sense.