Though I like the planets of the Republic, the Republic as a ruling faction is inefficient. As is stated many times during the games, "the left hand has no idea what the right hand is doing". They try to tread the line between "doing the right thing" and "doing things right" and fail miserably.
If you look at Manaan, Roland Wann thinks that since you're a Jedi you have to do the Republic's bidding, seeming to forget that though they're allies you're not really indebted to them to the point of doing grunt work for them. Then after you "do the right thing" and save the fish on the ocean floor, all he cares about is the money lost when you destroyed the harvester (Which doesn't make sense considering that saving the fish saved the Kolto).
But that's not to say the Sith are any better, Malak's Sith had no clue of what to do with the galaxy other than "crush puny worlds and hope everything works out". <G0-T0>Malak's Sith Empire would probably have collapsed from a lack of infrastructure at the same rate as the Republic, probably quicker due to pockets of uprising disrupting the distribution of resouces.</G0-T0>