Here is a good example of the ill effects of government intervention. An excellent example for your H2/ H1 Economics Essay.
In market failure, we learn that it is necessary to have government intervention to correct market failure due to presence of public good. It is not always true. Below link is an example of a city without government. And the reason why it was able to progress so fast is because it does not have to undergo the usual red tapes that other cities need to under go.