It lost peace producing tyranny (6,5)
I believe the answer is:
police state
'tyranny' is the definition.
(police state is a kind of tyranny)
'it lost peace producing' is the wordplay.
'producing' indicates an anagram.
'it'+'lost'+'peace'='itlostpeace'
'itlostpeace' with letters rearranged gives 'POLICE STATE'.
(Other definitions for police state that I've seen before include "Big Brother society" , "Regime monitoring citizens" , "Oceania perhaps" , "East Germany once" .)