People in many parts of the world simply live beyond the apparatus of law and order. The District of Columbia spends about $850 per person per year on police. In Bangladesh, the government spends less than $1.50 per person per year on police. The cops are just not there.
In the United States, there is one prosecutor for every 12,000 citizens. In Malawi, there is one prosecutor for every 1.5 million citizens. The prosecutors are just not there.
In a world without functioning institutions, predatory behavior and the passions of domination and submission blot out economic logic.
Libertarianism may be fine for an Ayn Rand novel, but I'm not so sure it would work in reality.