Private sector institutions are capable of establishing strong incentives which lead to effective law making and law enforcement. Arbitration services, particularly for commercial disputes, have been increasingly used for some time, but the last few years have witnessed the development of a brand new industry -- private for profit courts now exist in many cities and compete with the public courts for a wide spectrum of civil disputes. In addition to the purchase of protection and adjudication services from private firms, individuals are increasingly supplementing government protection with efforts of their own. The burgeoning markets for these services indicate a growing dissatisfaction with public sector efforts to maintain social order. 3 tables, 254 references.