The Republic of Phaialee is a colossal, genial nation, ruled by President Nakano with an even hand, and renowned for its otherworldly petting zoo, pith helmet sales, and daily referendums. The compassionate, hard-working, cheerful population of 8.013 billion Phaialeens enjoy some of the most opulent lifestyles in the region, unless they are unemployed or working-class, in which case they are variously starving to death or crippled by easily preventable diseases.

The relatively small, liberal, pro-business government juggles the competing demands of Industry, Administration, and Education. It meets to discuss matters of state in the capital city of Shinobu City. Citizens pay a flat income tax of 14.9%.

The frighteningly efficient Phaialeen economy, worth a remarkable 2,042 trillion Phai Dollars a year, is broadly diversified and led by the Retail industry, with major contributions from Information Technology, Tourism, and Book Publishing. Average income is an amazing 254,846 Phai Dollars, but there is an enormous disparity between incomes, with the richest 10% of citizens earning 1,626,833 per year while the poor average 16,398, a ratio of 99.2 to 1.

Commemorative mugs remembering last year's Black Friday Crockery Riots are a best seller this year, history textbook pages are used as impromptu tissues by distraught students, fraternities are notorious for drunken hooliganism, and volunteers are signing up to take arms against an incursion of flesh-eating zombies (Phaialee has found 3 easter eggs). Crime is well under control. Phaialee's national animal is the Rabbit, which is also the nation's favorite main course.

Phaialee is ranked 98,415^th in the world and 4,799^th in Lazarus for Most Corrupt Governments, with 13.41 kickbacks per hour.