The Holy Golden Empire of Phalnia is a gargantuan, environmentally stunning nation, ruled by Emperor Augustine III with an even hand, and remarkable for its parental licensing program, anti-smoking policies, and public floggings. The hard-nosed, hard-working, humorless, devout population of 25.287 billion Phalnians enjoy extensive civil freedoms, particularly in social issues, while business tends to be more regulated.

The relatively small, corrupt government juggles the competing demands of Defense, Law & Order, and Spirituality. It meets to discuss matters of state in the capital city of Coeur Imperial. The average income tax rate is 21.0%.

The frighteningly efficient Phalnian economy, worth a remarkable 3,528 trillion Phalnian Bank Notes a year, is broadly diversified and led by the Tourism industry, with major contributions from Arms Manufacturing, Information Technology, and Retail. Black market activity is notable. State-owned companies are common. Average income is an impressive 139,538 Phalnian Bank Notes, and evenly distributed, with the richest citizens earning only 4.0 times as much as the poorest.

Politicians who misplace decimal points on expense reports are fired for gross incompetence, holidaymakers sleep curled up on the floor as hotel beds are replaced with oversized bookcases, genocide is seen as a topic best avoided in history lessons, and unemployed youngsters trained to kill are being released en masse into society. Crime, especially youth-related, is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. Phalnia's national animal is the Highland Eagle, which soars majestically through the nation's famously clear skies, and its national religion is The Church of the One Light.

Phalnia is ranked 33,037^th in the world and 2,010^th in Balder for Most Corrupt Governments, with 65.88 kickbacks per hour.