The Republic of Academy City is a gargantuan, efficient nation, ruled by Aleister Crowley with an iron fist, and renowned for its aversion to nipples, multi-spousal wedding ceremonies, and irreverence towards religion. The hard-nosed, hard-working, cynical population of 12.57 billion Espers are rabid consumers, partly through choice and partly because the government tells them to and dissenters tend to vanish from their homes at night.

The relatively small, corrupt, well-organized government juggles the competing demands of Defense, Industry, and Law & Order. It meets to discuss matters of state in the capital city of District 7. Citizens pay a flat income tax of 28.6%.

The frighteningly efficient Academy City economy, worth a remarkable 2,664 trillion Yen a year, is broadly diversified and led by the Information Technology industry, with significant contributions from Arms Manufacturing, Retail, and Woodchip Exports. Black market activity is rampant. Average income is an amazing 211,971 Yen, but there is a large disparity between incomes, with the richest 10% of citizens earning 899,424 per year while the poor average 32,223, a ratio of 27.9 to 1.

Citizens have to identify all the polar bears in a blizzard photo in order to access their bank account, the government is a law unto itself, animal liberationists receive government funding to break into animal research labs, and wheelchair users complain it is nearly impossible for them to cross the road in District 7. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Academy City's national animal is the Clone, which teeters on the brink of extinction due to widespread deforestation.

Academy City is ranked 30,224^th in the world and 6^th in Neo Otaku Utopia for Most Advanced Public Education, scoring 5,323.21 on the Edu-tellignce® Test Score.