The Federation of Krauanagaz is a huge, socially progressive nation, notable for its daily referendums, irreverence towards religion, and stringent health and safety legislation. The compassionate, democratic population of 852 million Krauanagazians 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 government — a sprawling, bureaucracy-choked, liberal, socially-minded morass — juggles the competing demands of Healthcare, Education, and Administration. It meets to discuss matters of state in the capital city of Yayyára. The average income tax rate is 87.0%, and even higher for the wealthy.

The Krauanagazian economy, worth 47.8 trillion Velliarizas a year, is driven almost entirely by government activity. The industrial sector is solely comprised of the Book Publishing industry. State-owned companies are reasonably common. Average income is 56,066 Velliarizas, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

Prisoners can't do number twos without their "toilet buddy" present, smoking is banned in public areas, government bureaucrats review designs for birdhouses to ensure they do not block the views of neighbors, and citizens cannot change their light bulbs without approval from an international committee. Crime, especially youth-related, is totally unknown, thanks to a very well-funded police force and progressive social policies in education and welfare. Krauanagaz's national animal is the Wolf, which frolics freely in the nation's many lush forests.

Krauanagaz is ranked 261,321^st in the world and 4,733^rd in the South Pacific for Largest Cheese Export Sector, scoring -7.69 on the Mozzarella Productivity Index.