First of all, you need to explain what your "Defense agency" does. Actual defense is almost impossible if you want any mobility. Even US presidents get shot by

First of all, you need to explain what your "Defense agency" does. Actual defense is almost impossible if you want any mobility. Even US presidents get shot by determined citizens. If someone is willing to give their life to kill someone else, it can be done. With current technology, real defense is absurdly expense and still not effective. So the way society currently works is on a system of retribution. You basically have a big paddle, and you whack people who get out of societal norms. You rely on people's (usually) occurring desire to not hurt themselves without enough reward to maintain a reasonable level of order. So your "Defense agency", are you basically paying them to avenge you in case someone does you wrong? This has actually existed for thousands of years, it is known as "blood feuds" (except your family members do the avenging instead of a hired party). What it leads to is different families killing one another for generations, some have lasted for multiple hundreds of years. OK, but now in your system, it isn't families killing eachother but hired guns. Lets say now instead of 1 big paddle (the gubment), you now have 5 smaller paddles. Human nature will have it that each of the owners of those paddles will threaten some people (usually where he lives) to give him money or else he will whack you. Now you don't freedom of choice. If you think you can funnel some more money to a different paddle to save you, that may work... until now that paddle is the biggest of the bunch and he controls your area as well. Human nature will... (look into what warlords are, read some history on the 1000-1500 years in Europe, Central Asia, Asia) Listen buddy, humanity started with anarchism. What we have now for government is at least close to the best that we ever had before. If other forms of human cooperation were better, then they would have survived. Human cooperation is a survival of the fittest, and currently in the world, people strive for western ideals. That means democracy, capitalism with a bit of socialism, is the best we have (and have had) so far.