Patrimonialism: All the power comes from the leader. He controls both public and private institutions. The military is loyal to him, and not the nation. Neo-patrimonialism: Power comes to the members of the state that are in a position where they can use resources of the state for personal profit and power. They use this to gain the loyalty of the public. These people will sometimes have more effective power than people in higher positions than him/her because of their connection to these resources.