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Discover LudwigThe phrase "failed state" is correct and usable in written English.
You can use it when referring to a state or country that has experienced a collapse in order for its basic systems and institutions, such as its government or economy. For example: "The chaos and violence in Iraq have earned it the label of a failed state."
Dictionary
failed state
noun
A state that has failed to meet the basic conditions and responsibilities of a sovereign government; one that has lost physical control of its territory, the ability to provide public services, etc.
Exact(59)
The Pacific's first failed state?
"How does a failed state live?
Libya is a virtual failed state.
Somalia is now the archetypal failed state.
Congo had become a lamentably failed state.
California has become a failed state.
Yet Somalia is not a failed state.
"Yemen will not be a failed state.
Institutionally, Lebanon is a failed state.
What, he asks, is a failed state?
Politically and economically, it verges on being a failed state.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com