Derived from the Ancient Greek word “klepto,” meaning “theft,” and “cracy,” meaning “rule,” kleptocracy means “rule by thieves.” It is defined as a form of government in which individuals seek personal gain at the expense of those they govern. The system involves abusing high-level political power, which enables ruling elites to steal public funds for their own gain. 

Kleptocracy involves systematically using a government’s powers to enrich its leaders. 

Kleptocrats, or leaders of a kleptocracy, use the stolen resources from their countries to stay in power. They do this through embezzlement, bribery, or clear abuse of public funds to enrich themselves and those close to them at the expense of the public they govern. 

Kleptocracy arises in countries that lack democratic institutions, particularly authoritarian regimes and dictatorships. These regimes lack accountability for the people they govern, allowing the systematic abuse of power to occur. 

Kleptocracy also tends to occur in countries rich in natural resources, as the control of these resources provides corrupt leaders with an outlet to increase their personal wealth. It’s important to note that self-enrichment is the driving force behind kleptocracies, and much of the stolen wealth is hidden overseas to protect it from being captured and from attempts by opponents to oust the regime.

Examples of Kleptocracies

The most known kleptocracy is Russia under Vladimir Putin, who has acted as ruler of the country in some shape or form since 1999. Putin and those at the top of his government benefit from self-enrichment while also using corruption to consolidate political control. Putin’s kleptocracy has made Russia the most unequal large country. 

Another known Kleptocracy is Nigeria under Sani Abacha, where Abacha and his associates embezzled billions of dollars from the Central Bank of Nigeria. Abacha held these stolen funds overseas in the UK and the US. Other examples include the Philippines under Ferdinand Marcos and Nicaragua under the Somozas family.

The US Treasury Department has established a Kleptocracy Asset Recovery Rewards Program aimed at combating foreign corruption and recovering stolen assets or forfeited proceeds. The Secretary of the Treasury has the authority under this program to offer rewards up to $5 million for information that leads to “(1) the restraint or seizure (2) forfeiture or (3) repatriation of stolen assets in an account at a U.S. financial institution (including a U.S. branch of a foreign financial institution), that come within the United States, or that come within the possession or control of any U.S. person.”

List of Kleptocracy Countries

• Russia: Known for its oligarchic system and allegations of widespread corruption.
• Venezuela: Facing economic crisis and political instability, with accusations of government officials enriching themselves at the expense of the population.
• Equatorial Guinea: Rich in oil but with a population living in poverty, indicating potential mismanagement of resources.
• Democratic Republic of Congo: Abundant in natural resources, yet plagued by corruption and conflict.
• Nigeria: Despite being Africa’s largest economy, it suffers from significant corruption and inequality.
• Angola: Oil-rich nation with a history of corruption and human rights abuses.
• Sudan: Long-term conflict and political instability have contributed to a culture of corruption.
• Zimbabwe: Economic decline and political turmoil have been linked to kleptocratic practices.
• Philippines: Has made strides in anti-corruption efforts but still faces challenges.
• Myanmar: Under military rule, the country has experienced significant corruption and human rights violations.