So, for some context:
This is a world artificially engineered by a single hyper-advanced precursor in an attempt to rapidly develop some new civilizations and militarize them in hopes of combating a mysterious foe and subsequently starting reconstruction across the observable universe.
As of "present-day", the world is 2056 years post-scarcity, with the original upgrade coming from a number of "ready" civilizations on-world being granted precursor technologies by said engineer. Replicator tech is cheap and common, with even kindergartners having basic knowledge on how to produce the means of production, in this case.
Most governments practice a form of socialist meritocracy, with the closest thing to a global currency being called "Rep", which is not unlike Facebook's Like system.
One state, known as the NOTA Republic, uses a form of representative democracy / democratic republic. It likewise recognizes Rep.
NOTA is fairly well-known worldwide due to practicing a form of capitalism in addition to the socialism - that is, basic human rights like housing and hormones are provided via the usual tech, but it also has an extant "material economy" of sorts stacked on top of it, as opposed to most "immaterial economies" which either utilize digital currency like Rep above or simply Replicate goods in and out of existence as needed.
What I'm struggling with at the moment is providing a believable justification for why a government would attempt to sustain its own capitalist market(s) in what's otherwise mostly a sea of socialism. Two possible excuses I've thought of are:
The economy exists as a form of autonomy due to paranoia; just in case said engineer decides to take away Replicator tech come reconstruction, they'll have physical goods to work with. That being said, I'm kind of hoping to have a more... benevolent justification than this.
Competitive markets have been established in order to prevent NOTA's people from "getting soft" leading up to the inevitable encounter with said mysterious foe.
As-is, I'm not really satisfied with either of those two, though.