The Federation of Canelia is a huge, efficient nation, ruled by Congress Commettie with an iron fist, and notable for its smutty television, frequent executions, and fear of technology. The hard-nosed, cynical, devout population of 999 million Canelians 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 government — a sprawling, bureaucracy-choked morass — juggles the competing demands of Education, Law & Order, and Administration. It meets to discuss matters of state in the capital city of City of Saint Charles. The average income tax rate is 80.6%, and even higher for the wealthy.

The frighteningly efficient Canelian economy, worth 68.6 trillion Spanish Pesetas a year, is highly specialized and led by the Basket Weaving industry, with significant contributions from Automobile Manufacturing, Arms Manufacturing, and Information Technology. State-owned companies are reasonably common. Average income is 68,668 Spanish Pesetas, and evenly distributed, with the richest citizens earning only 2.7 times as much as the poorest.

A handful of megacorporations own every "craft brewery" in the nation, acupuncture is routinely prescribed for intravenous drug addicts, parents are relieved they no longer need to help with their kids' algebra homework, and children get arrested for floating paper boats on lakes. Crime, especially youth-related, is totally unknown, thanks to the all-pervasive police force and progressive social policies in education and welfare. Canelia's national animal is the Owl, which soars majestically through the nation's famously clear skies.

Canelia is ranked 218,734^th in the world and 23^rd in Pax Britannia for Largest Gambling Industry, scoring -3.54 on the Kelly Criterion Productivity Index.