The Federal Republic of Vallholm is a huge, cultured nation, renowned for its museums and concert halls, avowedly heterosexual populace, and complete lack of prisons. The hard-nosed, hard-working, cynical population of 682 million Vallholmians are kept under strict control by the oppressive government, which measures its success by the nation's GDP and refers to individual citizens as "human resources."

The relatively small, corrupt, moralistic, well-organized government juggles the competing demands of Defense, Law & Order, and Education. It meets to discuss matters of state in the capital city of Azval. The average income tax rate is 19.6%.

The powerhouse Vallholmian economy, worth 66.8 trillion Valls a year, is broadly diversified and led by the Information Technology industry, with major contributions from Book Publishing, Arms Manufacturing, and Tourism. Average income is 97,974 Valls, and evenly distributed, with the richest citizens earning only 3.2 times as much as the poorest.

The nation's industries are scrambling to switch to biodegradable plastics, millions of Vallholmians are excellent swimmers, hidden bedroom-cams are installed to catch mothers doing their kids' homework, and mountain rescue missions can end with more people lost than found. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Vallholm's national animal is the Iguana, which frolics freely in the nation's many lush forests.

Vallholm is ranked 211,359^th in the world and 4,041^st in the South Pacific for Most Cheerful Citizens, with 49.5 Percentage Of Water Glasses Perceived Half-Full.