Just as democraticaly take a decade to take a bad decision makes it inefficient.
Sure. So what? Doesn't change my point that authoritarianism isn't just flat out more efficient.
But in games, a healthy mix of authoritarianism and democracy is required.
Those aren't the only options available. There's lots of different authority structures that can be used for games. Our political discourse tends to reduce to discussion in terms of those two forms, but that doesn't mean you have to do that for your game.