The Dominion of Kanuatu is a titanic, genial nation, notable for its state-planned economy, compulsory military service, and punitive income tax rates. The compassionate, cynical population of 10.646 billion Kanuatuans 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 government — a sprawling, bureaucracy-choked, socially-minded, well-organized morass — juggles the competing demands of Education, Industry, and Social Policy. The average income tax rate is 72.7%, and even higher for the wealthy.

The large but inefficient Kanuatuan economy, worth 303 trillion Kanuatuan 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, highly specialized black market in Woodchip Exports, Uranium Mining, and Cheese Exports. 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 28,456 Kanuatuan Dollars, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

The government is pouring money into 'Operation Enduring Democracy', cassocked priests and choirboys believe that what happens behind closed doors stays behind closed doors, the media have begun calling the government treasury "Leader's stash", and children's TV shows are having a gay old time. Crime, especially youth-related, is totally unknown, thanks to a very well-funded police force and progressive social policies in education and welfare. Kanuatu's national animal is the Lion, which teeters on the brink of extinction due to widespread deforestation.

Kanuatu is ranked 40,142^nd in the world and 280^th in eta for Nicest Citizens, with 18.34 average smiles per day.