The Most Serene Republic of Michaelvia is a huge, efficient nation, renowned for its compulsory military service, public floggings, and sprawling nuclear power plants. The hard-nosed, cynical, devout population of 612 million Michaelvians are ruled without fear or favor by a psychotic dictator, who outlaws just about everything and refers to the populace as "my little playthings."

The medium-sized, corrupt, moralistic, well-organized government juggles the competing demands of Defense, Administration, and Education. It meets to discuss matters of state in the capital city of Michaelvia City. The average income tax rate is 54.2%, and even higher for the wealthy.

The very strong Michaelvian economy, worth 51.1 trillion Nicks a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. However, for those in the know, there is a slick, highly efficient, broadly diversified black market in Arms Manufacturing, Woodchip Exports, Uranium Mining, and Furniture Restoration. The private sector mostly consists of enterprising ten-year-olds selling lemonade on the sidewalk, but the government is looking at stamping this out. Average income is 83,566 Nicks, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Citizens must have a license to operate a computer, conductors wield diamond-encrusted batons to fit in with their freshly gilded surroundings, military doctrine says not to open fire until you see the "beady little eyes" of Johnny Foreigner, and military equipment stores have a tendency to go up in flames. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Michaelvia's national animal is the badger mole, which teeters on the brink of extinction due to widespread deforestation.

Michaelvia is ranked 71,781^st in the world and 614^th in the West Pacific for Largest Insurance Industry, scoring 2,965.33 on the Risk Expulsion Effectiveness Rating.