The fact that these regions haven't collapsed into a Mad Max wasteland is not the proper metric for economic success.
What matters is what would have occurred had the State not destroyed various markets for the last several hundred years. Compared to the world that would have been, the current situation is a filthy sewer pit.
As for the perfect information issue, what source of economic information is superior to markets? Markets are just people voluntarily trading goods. What could, other than voluntary trade, supply superior information about consumer preferences and productive capacity?
There are no externalities. There are property rights violations. Markets that tolerate the violation of property rights are not free. If there are no property rights violated, then it's not a problem. Externalities is an illusion, a non-issue.
Likewise, markets cannot fail. They either are free, in which case people are voluntarily trading property, or they are not free. Markets have no purpose, other than to allow consumers and producers to find one another. What statists mean by "market failure" is that voluntary trade does not produce the results that a small, powerful segment of the population wants. So they violate property rights (i.e., aggress on others) to achieve those results, and then labels anyone who dares to complain as "selfish" or "unpatriotic" or some other nonsense.