The Borderlands of Loiku is a colossal, socially progressive nation, remarkable for its state-planned economy, absence of drug laws, and stringent health and safety legislation. The democratic population of 2.563 billion Loikuans 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 large, liberal, socially-minded, outspoken government juggles the competing demands of Welfare, Education, and Healthcare. The average income tax rate is 56.3%, and even higher for the wealthy.

The sizeable but stagnant Loikuan economy, worth 46.2 trillion Ducats a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. However, for those in the know, there is a slick, highly efficient black market in Pizza Delivery, Automobile Manufacturing, Furniture Restoration, and Woodchip Exports. The private sector mostly consists of enterprising ten-year-olds selling lemonade on the sidewalk, but the government is looking at stamping this out. Average income is 18,027 Ducats, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

Kids these days know how to throw a proper punch, Leader claims tax rises are the result of 'curses', soldiers stream their classified military operations live for millions of fans, and same-sex marriages are increasingly common. Crime is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Loiku's national animal is the Cat, which can occasionally be seen sifting through garbage in the nation's cities.

Loiku is ranked 295,053^rd in the world and 58^th in Swabia for Largest Gambling Industry, scoring -10.81 on the Kelly Criterion Productivity Index.