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worst: despotism & feudalism
Best: (this depends on your playstyle) Monarchy, Democracy, & Communism
Republic is usually considered the best goverment, mainly for peace, though it can be used for short wars effectively.
Democracy has better Worker Efficiency and lower Corruption and Waste, but the high war War Weariness makes it impractical if you have to sustain a war for any extended period of time, so I prefer Republic as well for most situations. If you have total dominance later in the game you might switch to Democracy then.
Because of anarchy period and what you mention, most players dont like to switch governments very often. Some good players dont like the game to go past the 2nd era or not very much at all, so Demo would be of little use.
but if you have a religious civ, anarchy lasts only 1 turn
Still its several techs out of the way, when one wants to get to the next era as fast as possible, or if one wants to end it early, they may just stop tech entirely for gold.
I wasn't suggesting that one should switch governments very often, on the contrary. You should only switch when it would benefit you in the long run. And while I’m sure some might not want to finish a game, there are others who are playing for a Diplomatic or Space Race victory and will play till the very end.
i'm one of those... ^^
For peacetime, Democracy and Republic are best. They give bonus commerce to every commerce-producing tile, which is a MASSIVE boost to your economy and especially good for teching. Which is better depends on how much military action you might potentially see - Republic can support an adequately small military for free and doesn't collapse quite as quickly when war breaks out, but Democracy has even less corruption and faster workers.
For war, Monarchy is you best bet until you unlock the Industrial Age governments, at which point Communism is often the best bet. Fascism has some powerful benefits, including uber-fast workers and massive unit support, but it also has some giant penalties which make it only worth it if you're in it for the long haul (and questionably even then). If you plan on doing anything but warring anytime soon, Communism will suit you better.
Communism is no doubt better with the Secret Police HQ (that was a later addition to the game), but I was never a big fan of letting corruption into my best cities. I also don't like forced labor as a rush; I'll often have a lot of money in the Industrial Age and I'll want to make good use of it.