Definitions for narco-state
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Princeton's WordNet
narco-state(noun)
an area that has been taken over and is controlled and corrupted by drug cartels and where law enforcement is effectively nonexistent
"this Mexican town has become a narco-state that ships 100 pounds of cocaine to the United States every day"
Wiktionary
narco-state(Noun)
A state whose economy depends heavily on narcotics and other drugs.
With the collapse of the government, there is a real danger the country will become a narco-state
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"narco-state." Definitions.net. STANDS4 LLC, 2013. Web. 22 May 2013. <http://www.definitions.net/definition/narco-state>.

