Lack of government does result in lack of order, the power of the strongman, the need to constantly watch out for yourself on all fronts and thus extremely low trust in society, which in turn brings about a relatively low level of economic activity. Yes, we experienced this after re-gaining independence from the USSR.
We had similar economic collapse for years previously, within the USSR. And the country was economically quite poor up to, say, the yrar 2000. But things got much-much better security-wise already around 1994-1995 after the first government had been in power for a couple years. It still took a few more years to get the mafias fully out, and the business environment secure.