The People's Republic of Dwarfania is a tiny, genial nation, remarkable for its barren, inhospitable landscape, punitive income tax rates, and devotion to social welfare. The compassionate population of 18 million Dwarfanians are fiercely patriotic and enjoy great social equality; they tend to view other, more capitalist countries as somewhat immoral and corrupt.

The enormous, socially-minded government juggles the competing demands of Education, Defense, and Welfare. The average income tax rate is 67.7%, and even higher for the wealthy.

The fragile Dwarfanian economy, worth 384 billion Ducats a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. The industrial sector, which is quite specialized, is mostly made up of the Trout Farming industry, with significant contributions from Uranium Mining and Furniture Restoration. Average income is 21,359 Ducats, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

The nation's war memorials are being torn down and replaced with peace gardens, politicians are often found scavenging bins at night to supplement their income, people across the world seek to be healthier by eliminating carbs, and political hopefuls must announce their intentions decades in advance to accommodate extensive background checks. Crime is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. Dwarfania's national animal is the Mole, which teeters on the brink of extinction due to widespread deforestation.

Dwarfania is ranked 285,053^rd in the world and 2,737^th in the Pacific for Largest Insurance Industry, scoring -7.81 on the Risk Expulsion Effectiveness Rating.