The City-State Republic of Carnation Bay is a colossal, efficient nation, ruled by Theresa Choi with a fair hand, and renowned for its barren, inhospitable landscape and complete absence of social welfare. The hard-nosed, hard-working, democratic population of 3.266 billion Carnatians are effectively ruled by a group of massive corporations, who run for political office and provide their well-off citizens with world-class goods and services. Their poorer citizens, however, are mostly starving to death while being urged to go out and get real jobs. The populace has reasonably extensive civil rights, although these are mostly aimed at allowing them to buy whatever they like.

The minute, pro-business, outspoken government, or what there is of one, juggles the competing demands of Education, Defense, and Healthcare. It meets to discuss matters of state in the capital city of Carnation Bay. Citizens pay a flat income tax of 5.5%.

The thriving Carnatian economy, worth 207 trillion Carnatian Dollars a year, is driven almost entirely by the private sector, which is fairly diversified and led by the Basket Weaving industry, with major contributions from Information Technology, Uranium Mining, and Pizza Delivery. Average income is 63,384 Carnatian Dollars, but there is a significant disparity between incomes, with the richest 10% of citizens earning 224,360 per year while the poor average 12,929, a ratio of 17.4 to 1.

The latest Harry Potter book is a bestseller, Mr Happy's Funland has just been named Carnation Bay's new capital, Theresa Choi has just been declared ruler of Carnation Bay in an international press conference, and None has been named as Carnation Bay's national religion. Crime is a problem, with the police force struggling against a lack of funding and a high mortality rate. Carnation Bay's national animal is the Carnatian Whale, which can occasionally be seen avoiding garbage in the nation's murky oceans, and its national religion is None.

Carnation Bay is ranked 279,880^th in the world and 10^th in Dacarbatia for Most Eco-Friendly Governments, scoring -3.16 on the Dolphin Recycling Awareness Index.