Looking from a western civilization viewpoint, it would look very bad, however it would not be murder in the streets and burning the town down in chaos. Where I stay, the police force is pretty much broken. Corruption runs so deep, the high up powers are all bribed and paid off, and so do nothing other than loot all finances. The boots on the ground, even if they wanted to do something, can't as they have no support or equipment. This has led a to there being a fair amount of the country with areas where state services do not go to whole cities and towns, not just some parts of the city. Police vehicles get stoned and burned, Ambulance and firefighting vehicles get hi-jacked and stripped, etc.
The residents do not want the government there, as they have a system which works better, in their opinion, and our name for it is Mob Justice.
Gangs run a lot of the stuff, from drinking establishments and gambling and drugs, to prostitution, to local bashing and intimidation rackets, down to petty theft. For the most part however, normal people just go about their daily lives.
There are rules that everyone knows you do not break though.
1. You never harm your neighbors. ( If you commit crimes, do not do it in your area. Steal from the people over there, go sell drugs over there. Gang fight? do it over over on that side, etc.)
2. Some crimes are off limits. Steal someones cell phone, you might get chased by some people for a couple of blocks. If they catch you they will beat you up, and then its done. Harm a woman or child, and the entire community will band together to find you, and when they do they will kill you. A common favorite is called necklacing. Sensitive viewer warning (It involves forcing a tire over the person, pinning their arms to the side, dousing them in petrol or other flammable liquids, and then burning them.)
3.Your actions must benefit the group. Stealing from those people, brings money into your local area. Alcohol, drugs, prostitution etc being run, is for those that stay in the area.
Just some of the kinds of unwritten rules. When everyone obeys, stuff runs smoothly. When someone breaks it, all hell breaks loose. So while you would not get a total anarchy situation, it is still lawless.