The Federal Republic of Karel37 is a very large, environmentally stunning nation, remarkable for its frequent executions, national health service, and punitive income tax rates. The hard-nosed, hard-working population of 403 million Karelians have some civil rights, but not too many, enjoy the freedom to spend their money however they like, to a point, and take part in free and open elections, although not too often.

The medium-sized government juggles the competing demands of Administration, Education, and Law & Order. It meets to discuss matters of state in the capital city of Heřmanův Městec. The average income tax rate is 51.4%, and even higher for the wealthy.

The thriving Karelian economy, worth 30.2 trillion prdels a year, is dominated by the Trout Farming industry, with significant contributions from Information Technology, Arms Manufacturing, and Tourism. Average income is 75,049 prdels, and evenly distributed, with the richest citizens earning only 2.2 times as much as the poorest.

Traffic cops spend most of their work-hours calculating citizens' monthly income, a law degree is required before telling people not to drink and drive, genetic research is temporarily tied up in government red tape, and election results are often delayed for weeks to count the expat votes. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Karel37's national animal is the beaver, which frolics freely in the nation's many lush forests.

Karel37 is ranked 176,865^th in the world and 497^th in Horizon for Largest Welfare Programs, scoring 931.7 on the Safety Net Mesh Density Rating.