The Federation of Krauanagaz is a huge, genial nation, notable for its daily referendums, absence of drug laws, and punitive income tax rates. The compassionate, democratic population of 773 million Krauanagazians are free to do what they want with their own bodies, and vote for whomever they like in elections; if they go into business, however, they are regulated to within an inch of their lives.

The government — a sprawling, bureaucracy-choked, liberal, socially-minded morass — juggles the competing demands of Healthcare, Education, and Administration. It meets to discuss matters of state in the capital city of Yayyára. The average income tax rate is 86.3%, and even higher for the wealthy.

The Krauanagazian economy, worth 41.9 trillion Velliarizas a year, is driven almost entirely by government activity. The industrial sector, which is extremely specialized, is mostly made up of the Book Publishing industry, with significant contributions from Information Technology. State-owned companies are reasonably common. Average income is 54,169 Velliarizas, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

The importance of winning Olympic gold medals is indoctrinated from an early age, destitute athletes are forced to train in the street, more than one company makes the board game Monopoly, and earthquake sirens are a leading cause of hearing loss. Crime, especially youth-related, is totally unknown, thanks to a very well-funded police force and progressive social policies in education and welfare. Krauanagaz's national animal is the Wolf, which frolics freely in the nation's many lush forests.

Krauanagaz is ranked 255,653^rd in the world and 4,638^th in the South Pacific for Largest Gambling Industry, scoring -7.24 on the Kelly Criterion Productivity Index.