Final answer:
Nepotism is the crime involved when personal relationships become the paramount consideration in state policy-making and the allocation of resources.
Step-by-step explanation:
The crime involved when personal relationships become the paramount consideration in state policy-making and the allocation of resources is nepotism. Nepotism is the practice of favoring relatives or close associates in business or political matters, often at the expense of qualified individuals. This form of corruption undermines meritocracy and fairness in decision-making processes.