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Kleptocracy is a colloquial term for a form of government in which political power is vested in individuals who have amassed the most political and economic influence through any means. Literally meaning "rule by thieves", kleptocratic states are categorised as an oligarchic society where the ruling class of kleptocrats exploits the general population in order to further their own political aims and agendas. These kleptocrats tend to backstab each other with regularity, resulting in a highly unstable political system which revolves entirely around the quest to become the supreme ruler of the nation. Usually, the leaders of a kleptocracy steal large amounts of public finances.

Micronations with an official kleptocratic form of government are a theoretical impossibility, as no-one would willingly involve themselves in such an organization. A micronation functioning as a kleptocracy, which functions upon heavy leadership competition is entirely possible.