I think governments are not stupid, they know about this debt but turn a blind eye. They prefer to focus on elections and all the political stuff as measures to balance the finances will not go down well with the people.
Governments do not want to let go of centralised power, however, in undeveloped countries there may be more opportunities for adoption as it could benefit the economy. Of course, it depends on how governments see it.
Power seems to corrupt humans. It is only a pity that it is the poor citizens that always feel most of the economic heat.