The Princely Republic of Valdutz is a massive, cultured nation, ruled by Bergmeister Freidrik with a fair hand, and remarkable for its irreverence towards religion, punitive income tax rates, and stringent health and safety legislation. The compassionate, democratic population of 4.609 billion Valdutzers 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 enormous, outspoken government juggles the competing demands of Education, Healthcare, and Welfare. It meets to discuss matters of state in the capital city of Schaan. The average income tax rate is 85.3%, and even higher for the wealthy.

The powerhouse Valdutzian economy, worth 437 trillion Valdutz Marks a year, is quite specialized and led by the Information Technology industry, with significant contributions from Book Publishing, Basket Weaving, and Tourism. State-owned companies are common. Average income is 94,982 Valdutz Marks, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Unemployed accountants keep double-entry ledgers of their benefit claims, reflection is vital for badly behaved politicians, the education system is being cleansed of all corporate influence, and gardeners must genetically test weeds for unique traits before digging them up. Crime is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Valdutz's national animal is the octopus, which frolics freely in the nation's sparkling oceans, and its national religion is Pluralism.

Valdutz is ranked 257,827^th in the world and 12,271^st in the South Pacific for Lowest Overall Tax Burden, scoring -149.63 on the Hayek Index.