The People's Republic of Luako is a massive, cultured nation, ruled by Boin with an iron fist, and remarkable for its compulsory military service, pith helmet sales, and keen interest in outer space. The hard-nosed, cynical population of 2.213 billion Luakoans are ruled with an iron fist by the dictatorship government, which ensures that no-one outside the party gets too rich. In their personal lives, however, citizens are relatively unoppressed; it remains to be seen whether this is because the government genuinely cares about its people, or if it hasn't gotten around to stamping out civil rights yet.

The large, corrupt, socially-minded, well-organized government juggles the competing demands of Education, Administration, and Law & Order. It meets to discuss matters of state in the capital city of Boin's Town. The average income tax rate is 85.0%, and even higher for the wealthy.

The frighteningly efficient Luakoan economy, worth 277 trillion Hammers 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 Tourism industry, with significant contributions from Information Technology, Trout Farming, and Arms Manufacturing. Average income is an impressive 125,461 Hammers, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Children are encouraged to fail at school so as not to appear too enlightened, 13-year-old internet trolls are treated as a threat on par with terrorists, courtrooms can be a little sketchy, and citizens are encouraged to report friends, family members or co-workers who seem depressed to the government for "counselling". Crime, especially youth-related, is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. Luako's national animal is the Bear, which frolics freely in the nation's many lush forests.

Luako is ranked 159,740^th in the world and 60^th in New West Indies for Largest Insurance Industry, scoring -2.05 on the Risk Expulsion Effectiveness Rating.