The Republic of Iaoue is a titanic, socially progressive nation, ruled by Michael Grant with a fair hand, and notable for its closed borders, barren, inhospitable landscape, and irreverence towards religion. The democratic population of 16.874 billion Iaoueans 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 large, socially-minded, outspoken government juggles the competing demands of Welfare, Education, and Healthcare. It meets to discuss matters of state in the capital city of North Berlin. The average income tax rate is 48.7%, but much higher for the wealthy.

The large but underdeveloped Iaouean economy, worth 411 trillion dollars 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, quite specialized black market in Uranium Mining, Gambling, Information Technology, and Arms Manufacturing. 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 24,337 dollars, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Livestock mutilations are on the rise, criminals lock themselves in their mums' basements to avoid prison, concert pianists lie about their occupation to avoid ridicule, and every microwave and toaster is being disassembled and probed by inspectors. Crime is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Iaoue's national animal is the kiwi, which teeters on the brink of extinction due to widespread deforestation, and its national religion is Quakers.

Iaoue is ranked 30,399^th in the world and 2^nd in The Academy for Least Corrupt Governments, with 94.05 percentage of bribes refused.