The Democratic Republic of Xhaco is a gargantuan, genial nation, ruled by President League with an even hand, and notable for its public floggings, irreverence towards religion, and devotion to social welfare. The compassionate, hard-working, cheerful population of 10.063 billion Xhacoans enjoy extensive civil freedoms, particularly in social issues, while business tends to be more regulated.

The relatively small government juggles the competing demands of Industry, Education, and Defense. The average income tax rate is 43.1%, but much higher for the wealthy.

The frighteningly efficient Xhacoan economy, worth a remarkable 1,875 trillion Dollars a year, is fairly diversified and led by the Tourism industry, with major contributions from Information Technology, Retail, and Soda Sales. State-owned companies are common. Average income is an impressive 186,343 Dollars, and evenly distributed, with the richest citizens earning only 2.6 times as much as the poorest.

Thieves are flogged in public for their crimes, the running costs of homeless shelters are so high that it would be cheaper to buy houses for the homeless, the sudden proliferation of nuclear weapons is very queer, and janitors and factory workers are often better educated than the bosses they work for. Crime, especially youth-related, is a major problem, perhaps because of the country's complete lack of prisons. Xhaco's national animal is the Dog, which frolics freely in the nation's many lush forests.

Xhaco is ranked 287,202^nd in the world and 11,000^th in Balder for Lowest Crime Rates, with 36.38 law-abiding acts per hour.