Democracy has a lot of problems for determining nationwide retirement systems
and drug regulation. But remember modern American democracy evolved from
town governance systems and it's just fine for that. Police takeovers aren't
too much of a problem with that system, and there are defenses against that
with resident police and an armed citizenry. In an anarchic system no doubt
there would be insurance for renegade police as well; but that's a backup
defense, just as the main line of defense against fire is a fireproof roof,
fire extinguishers, and a sprinkler system, not the fire insurance company.
Shopping malls and office centers will provide protection acceptably too, of
course, as safety is an essential part of what they sell. No safety, no
sales; mafioso protection, no sales either. No need for democratic controls
there.