The Socialist Empire of Spunklia is a massive, environmentally stunning nation, ruled by Sebastian Taylor with an iron fist, and remarkable for its infamous sell-swords, irreverence towards religion, and punitive income tax rates. The hard-nosed, cynical population of 1.751 billion Spunklians 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 enormous, corrupt, moralistic, well-organized government juggles the competing demands of Defense, Law & Order, and Administration. It meets to discuss matters of state in the capital city of Eston Square. The average income tax rate is 68.9%, and even higher for the wealthy.

The sizeable but inefficient Spunklian economy, worth 84.1 trillion pixie dusts 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 large, well-organized, quite specialized black market in Arms Manufacturing, Tourism, Retail, and Beef-Based Agriculture. 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 48,023 pixie dusts, and evenly distributed, with the richest citizens earning only 2.3 times as much as the poorest.

Government-sanctioned speed mating is rife with Party-sanctioned abuse of power, the police crack down on tax evaders without mercy, nations across the world are quick to praise Sebastian Taylor's good looks and intellectual prowess, and it is mandatory to learn evolution in schools. Crime, especially youth-related, is totally unknown, thanks to the all-pervasive police force and progressive social policies in education and welfare. Spunklia's national animal is the sheep, which frolics freely in the nation's many lush forests.

Spunklia is ranked 210,039^th in the world and 11,375^th in Lazarus for Largest Insurance Industry, scoring -2.9 on the Risk Expulsion Effectiveness Rating.