Panem's governmental system in The Hunger Games is bad for a multitude of reasons. There is, of course, the obvious reason: the Hunger Games in and of themselves. This is perhaps the biggest reason. It takes two children from each of the twelve districts every year to make them fight and kill each other until there is only one left standing. The winner of the Games is not even left in peace after that—they have to be mentors for all the following Tributes of their district, reliving their trauma every year. They are also put to use outside of the world of the Games. Finnick, for example, was made into a prostitute for President Snow. Or even worse, winners are forced to fight in another Games, such as the Third Quarter Quell in Catching Fire.
Although the Games are certainly the most obvious reason, there are others: the gluttony it promotes by creating a liquid that is meant to make you throw up after eating a lot just so you can eat more. The ridiculously extravagant lifestyle of the citizens of the Capitol helps keep them focused more on fashion than politics, so the government can do pretty much whatever it wants. It is also a dictatorship—the title "President" is just to keep things sounding nice. President Snow holds complete control over everything, and he enforces his tyrannical rule with the use of propaganda, his Peacekeepers (who keep the peace using violence and fear tactics), and also capital punishment.
The government keeps the majority of its wealth and technology centered within the Capitol. It spreads out a little to the first few districts, but districts like 11 and 12 are impoverished, barely making ends meet. Not to mention that the government authorized the total and complete destruction of District 13.
Overall, the government of Panem is a truly terrible regime, controlled by a tyrant with absolute power who has no qualms about killing countless people in order to spread fear.
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