Evgeny Fishkin
I have had to answer something like this many times, but it’s easier to answer briefly once more than to search for links to old posts.
General recommendation: increase the level of decentralization. The more decentralization there is in a particular sphere, the fewer free riders there are—there are no incentives left for them.
Decentralization in the sphere of defense means arming oneself. To a neighbor with a rifle, you are no longer just a neighbor, but also someone who will provide friendly cover fire. There is a non-illusory danger of an attack by a serious enemy—this is a great excuse for regular team-building activities. Have a few shots, then go drink beer.
Decentralization in the sphere of security is, conventionally speaking, about keeping private keys yourself rather than on an exchange. Installing an alarm system in your apartment so that security you’ve hired arrives on call, rather than some state police. And so on.
Decentralization in the sphere of law means settling things yourself, and if you cannot, turning to those you trust, rather than those appointed by other people. Most conflicts are resolved out of court even with a state, although, one would think, here is a centralized conflict resolution service provided to you, why not use it? Inconvenient? Exactly!
