The Population Problem

Brief, unstructured, but have always wanted to put this through. Many questions and not critically thought ideas.

The root of most human induced problems is large population. I feel any race/city/organization/institution that limits it size to as much as it can handle will function better than those that grow uncontrollably. Now this sounds obvious, but surely other than the Chinese no one seems to be following this.
The obvious issues -

• Day to day troubles - Road traffic. Queues in supermarkets. Local transport, metro, buses, trains always crowded.
• Education - Can the government provide education to everyone? What is the selection of students? Creates division and hierarchy amongst institutions - not everyone gets to study at a top tier institute. On what basis is an individual considered worthy of a top level education?
• Employment - Where do you generate so many jobs? Even if you push in more people into each domain, say increase the size of police force as the overall population grows, this creates a hierarchy within that domain, and as discussed next, there are several problems with hierarchy.
• Food, Water, Shelter - The most obvious of all problems. Natural resources are limited and are enough to sustain humanity to a limit. 

So this is the thing with large population. It inherently creates the need for hierarchy to define procedures and policies. Hierarchy gives more power to a smaller section of society that represent the larger, less powerful section. Now hierarchy is a very good thing, as long as policies and procedures are defined and strictly followed. But human nature is so, that greed, superiority and ego creeps into those with power. The feeling of 'I control thou', and the feeling of 'no one checks on my doings' is disastrous to a society. Ideally, people should have control to overthrow those in power as soon as the masses see misuse of power by their representatives. But this a very ideal and optimistic idea - it never really works. The majority think they have no say - they don't see their collective power as stronger than the individual power of their representatives. So what is to be done to overthrow those that misuse power the people once handed to them? The masses need to realize their capabilities. Or, you may say this creates a need for creating an organization that sits at the top of the entire pyramid. One with complete control and ability to look over each organizations' activities. Something like a board of directors of a company that decides the fate of a CEO. Or the election commission during elections of a nation. But then again, who looks over this top-level organization? How is this organization elected?

So far, we've established the following-
Large Population -> Hierarchy -> But now what? A 'mother organization' keeping a check on every other section below it? Do the people decide the fate of those they once chose as representatives?

I am certain societies would function much better if they restrict the number of people in them. However, would 29 countries be better than one un-united nation? What are the implications of breaking the nation into 29 fragments? Can we compare Europe to India, and the states as individual countries?
Probably not. Divided we will all fall. Because dividing one nation into several nations generates the feeling of us and the other, which is terrible for neighbouring divides. However, is keeping these feelings unheard any good? Us and the other definitely exists amongst the north, the south, the east and the west.

Okay. End of thought train.
You might enjoy how so many people like throwing in their 2 cents on this topic on quora : 1, 2, and 3.