Well, not all the cases were like this, although this you explain would not surpirse me. But some places their own governments were fucking the people and the multinationals just went there to get cheap labour.
And why were the governments fucking the people? Were they doing it for the lulz?
This you are describing is what happens in a social-democracy. Political darwinism. In social-democracy the people with money can and do use it to screew the poor and the middle classes. If the government can not intervene or directly there is no government it can not happen.
You're right. Corporations cannot control the government if the government doesn't exist. Instead, they'll just control people directly. Explain to me how that's better. You've removed a tool, but you haven't addressed the root of the problem - like banning guns instead of getting rid of criminals.
Government is the collective bargaining power of the common man. The trick is to keep is strong and focused enough that it cannot be controlled by corporations and those with money. Castrating it or removing it all together is simply removing the only power the common man has, that of organization and unity.
Yes, government is there to protect you, specifically you. The politicians of your country went to bed yesterday thinking in ways of making your life easier. Good luck.