The problem is one of regulatory capture - corporate vested interests control the governance process and that means peons are getting less and less each day for their tax revenues.
And the problem you state is not unique to any government in the world. Germany is better run than Italy and there are many reasons behind it.
The problems with many things, but especially the price of SF Muni's new Central Subway and the like, are more about union interests controlling the governance process than corporate. Remember that they do prevailing-wage construction (which somehow means they pay the highest wage out there, not the average/median) to their construction workers.
The millions/billions spent on environmental-review studies and lawsuits are another matter as well.
You haven't traveled much if you believe this. Try going to the northeast sometime.
http://www.businessinsider.com/the-worst-roads-in-america-20...
That there are bad roads elsewhere? I believe that too :).
The thing is it shouldn't be topping any list like this, with the amount of money and lack of north eastern weather.