The Democratic Republic of Margallia is a huge, socially progressive nation, remarkable for its state-planned economy, compulsory military service, and stringent health and safety legislation. The compassionate, devout population of 513 million Margallians enjoy extensive civil rights and enjoy a level of social equality free from the usual accompanying government corruption.

The medium-sized, socially-minded government juggles the competing demands of Welfare, Education, and Spirituality. It meets to discuss matters of state in the capital city of Kismetia. The average income tax rate is 24.8%, but much higher for the wealthy.

The sizeable but underdeveloped Margallian economy, worth 18.0 trillion gems a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. The industrial sector, which is fairly diversified, is dominated by the Tourism industry, with significant contributions from Beef-Based Agriculture, Woodchip Exports, and Door-to-door Insurance Sales. Average income is 35,040 gems, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Many friends and relatives of Leader have been given ambassador jobs in tropical island nations, the Museum of Blackacrean War Crimes is located on "Blackacre Did Nothing Wrong Avenue", snitches get riches, and government employees have reverted to carrier pigeon due to never-ending virus scans. Crime, especially youth-related, is totally unknown. Margallia's national animal is the hamster, which is also the nation's favorite main course.

Margallia is ranked 295,757^th in the world and 3^rd in Queen Amelie Islands for Largest Black Market, with 27.0 billion Standard Monetary Units.