Urban Dictionary: A system of government characterized by rampant corruption and misallocation of public funds.
That country is a kleptocracy in which nothing is accomplished without greasing the palms of government officials.
YourDictionary.com: a political regime whose members make flagrantly dishonest use of their official position for personal gain
Answers.com: Kleptis is the Freek word for thief. Klepto is the ancient Freek verb for to steal. Kratos is the Greek word for power or state.
Oxford English Dictionary: A ruling body or order of thieves. Also, government by thieves; a nation ruled by this kind of government.