It is clear that the proper purpose of government is the application of retaliatory force. This presumably includes the application of force, by the police and law courts, against parents that are negligent in raising their children , since by having children, parents are implicitly accepting a certain obligation.
Now, with the children rightfully removed from the care of negligent parents, what is the government to do with them? Clearly, it is not the government's role to raise them. And it is also clearly not the government's role to force anyone else to raise them. So, in an Objectivist society, what would be done with these children that have been "rescued" from their parents, where no one else volunteers to raise them?
In practice of course, charities will almost certainly exist to do so. But how do we reconcile the child's right to its life with other individuals' rights to their lives if no charity/relative volunteers? There are no conflicts between rational men, but does this represent a potential conflict between rational men and children that have not yet fully developed their rational faculty?
 What this negligence includes, and how it can be objectively determined, is probably a separate issue/question on its own -- can negligence be objectively determined short of physical harm and can negligence causing mental/cognitive harm be objectively determined?
I would like to address the part of the question asking about the nature of the negligence. In a piece I wrote exploring the issue of abortion, I explained that
With this principle in hand, I argued that it is specifically the chosen act of taking another person (in this case creating another person) into a state of vital dependence that brings about the kind of obligations we hold parents to:
There may be a great many specialized departments and agencies involved in implementing the three broad institutions of a proper government (police, courts, national defense) -- and it would be perfectly legitimate and unsurprising for there to be an agency focused on objectively identifying and resolving these rights-violating gross failures in parenting.
answered Feb 28 '11 at 13:42
Greg Perkins ♦♦