The Federation of Krauanagaz is a huge, genial nation, remarkable for its irreverence towards religion, absence of drug laws, and punitive income tax rates. The compassionate, democratic population of 838 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, Administration, and Education. It meets to discuss matters of state in the capital city of Yayyára. The average income tax rate is 87.0%, and even higher for the wealthy.

The Krauanagazian economy, worth 47.1 trillion Velliarizas a year, is driven almost entirely by government activity. The industrial sector is solely comprised of the Book Publishing industry. State-owned companies are reasonably common. Average income is 56,240 Velliarizas, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

The best way to be heard in politics is to speak softly and carry a big comedy prop, aspiring musicians couldn't give away their music if they tried, bars are packed at all hours, and Leader has just been declared ruler of Krauanagaz in an international press conference. 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 12,301^st in the world and 354^th in the South Pacific for Most Cheerful Citizens, with 54.76 Percentage Of Water Glasses Perceived Half-Full.