This is true, but the example really wouldn't apply to multi party governments. Would Hong Kong or some other theoretical liberal dictatorship, with the lack of a right to vote but arguably more freedom in other more laissez-faire economic ways, be more free than the UK where the Multi-Party System continues to flourish? I suppose its arguable although I probably disagree with that conclusion .
It also runs into some problems when its used, like Hayek used it in that context, to defend someone like Pinochet. I know, for example, that to Friedman Pinochet is a dictator whose evil the Chicago Boys can curb by persuading him to adopt laissez-faire economic policies. I'm not completely sure that the same was true of Hayek in the context of his standing up for the Pinochet regime. Just some food-for-thought...
Interesting. So in your belief, without the right to vote, how would such decentralization work?
I'd say given how many industries in the UK have been de-nationalized and markets de-regulated that the trend is precisely the opposite.