In a cooperative, people voluntarily cooperate. But government compels them to cooperate.

But it's more complicated than that because the more local a government is, the easier it is to walk away from and the less crap it can do without strong negative feedback. It is more like a co-op, albeit it one that can change the rules on you after you've made a sizable investment. And one where people who've invested nothing have the same amount of say that you do!