narcokleptocracy

Drug lords and others involved in organized crime as a dominant group in society; the influence or rule exerted by this group.

A government influenced by such persons; a narcocracy.

As head of the PDF [Panamanian Defense Forces], [Manuel] Noriega now controlled all elements of the Panamanian government essential to the protection of drug trafficking and money laundering, thus accomplishing two goals simultaneously—increasing his control over Panama and enriching himself. Noriega had turned Panama's political system into what one witness termed a "narcokleptocracy," a political system in which Panamanian government became controlled by personal loyalties to Noriega, cemented by graft and corruption, and substantially funded with narcotics money.

I knew how eager they [new recruits to the All Burma Students' Democratic Front] were to fight the Burma Army, which they perceived as no better than a private army protecting Ne Win's narcokleptocracy.