> I don't think we have a word for when we force groups who should be cooperating to compete with each other for resources
I agree in terms of forcing, but we have plenty of ways to describe the general idea of choosing this direction, typically in exchange for a (real or perceived) benefit, but almost always with the inefficiency/delay you mentioned:
homegrown
homemade
handmade
handcrafted
artisan
DIY
roll your own
But it is more about the problems than the methodology. Centralized/Cooperative methods are more appropriate to solving a complex problem for which you know the solution (building a house, mass transit, maintaining highways). Distributed/Competitive methodology is better for exploring a problem space (determining the most energy efficient house design, innovative bus or train engines, cost effective highway surfaces). If you use cooperative when you should be using competition, you get a cartel. If you use competition when you should be cooperating, you get extreme inefficiency and long delays (I don't think we have a word for when we force groups who should be cooperating to compete with each other for resources).