The Communist Kingdom of South Merwervader Islands is a massive, environmentally stunning nation, ruled by Lord Sanfred Merwervader with an even hand, and renowned for its daily referendums, zero percent divorce rate, and devotion to social welfare. The compassionate, devout population of 1.475 billion South Merwervader Islandsians 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 large government juggles the competing demands of Education, Administration, and Healthcare. It meets to discuss matters of state in the capital city of Crocodile city. The average income tax rate is 73.1%, and even higher for the wealthy.

The frighteningly efficient South Merwervader Islandsian economy, worth 157 trillion rupees 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 led by the Book Publishing industry, with major contributions from Information Technology, Tourism, and Trout Farming. Average income is an impressive 106,918 rupees, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Houses and businesses are bulldozed to make way for ever-expanding cemeteries, Lord Sanfred Merwervader's campaign events reach their climax when the celebrity endorsers reveal themselves, it is a crime to offend someone's religious beliefs, and access to the woods is only granted to those who bring a small shrubbery. Crime is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. South Merwervader Islands's national animal is the Crocodile, which frolics freely in the nation's sparkling oceans, and its national religion is The Great Crocodile.

South Merwervader Islands is ranked 250,802^nd in the world and 1,511^th in The Communist Bloc for Lowest Overall Tax Burden, scoring -83.73 on the Hayek Index.