I agree that you have to consider the mode of the game. You are a democratically elected leader, using a cabinet to run a Western nation. It wouldn’t make sense for the vanilla game to allow for distributive governments, anarchies, etc. It doesn’t even take the unique representative governments of the U.S, Canada, and the U.K. into account or the fact that France has a president and a prime minister. That would make things insanely complex and unpleasant for most people. However, this would indeed be a great mod!
Keep in mind, that to allow for simplicity, the countries in Democracy 3 are ‘big government’. Anything you do (adding/cancelling policies) is the state taking direct action. Therefore, anarchy, anarcho-socialism, anarcho-capitalism, syndicalism, etc would make no sense. You can come close with a very libertine, social democracy. And you can have an authoritarian, moralistic democracy. And everything in between. But a true Police State cannot even exist in the game because people (for some reason) are still voting you into office to impose these oppressive policies. The mod would have to completely change the game and allow for a breakdown and total transformation of the political system that structures it. I imagine that would be very hard to do, but awesome!