Imagine a system in which a private company as a “government service provider” offers you protection of life, liberty and property. This service would include internal and external security, a legal and regulatory framework, and independent dispute resolution. You would pay a contractually fixed amount per year for these services. Besides that, you would take care of everything yourself. You would be able to do as you please, limited only by the rights of others and the contractually agreed rules of coexistence.
The government service provider as the operator of the community cannot unilaterally change this “Citizens’ Contract” with you at a later date. Disputes between you and the government service provider would be heard before independent arbitration tribunals, as is customary in international commercial law. If the operator ignores arbitral awards or abuses their power, their customers would leave and they would go bankrupt. The operator therefore has to face the economic consequences of their actions, giving them an incentive to treat their customers well in accordance with their contract.