The Federation of Kerguelea is a huge, genial nation, notable for its barren, inhospitable landscape and compulsory military service. The compassionate, hard-working, democratic population of 327 million Kergueleans hold their civil and political rights very dear, although the wealthy and those in business tend to be viewed with suspicion.

The relatively small, outspoken government juggles the competing demands of Welfare, Education, and Industry. The average income tax rate is 17.5%, but much higher for the wealthy.

The very strong Kerguelean economy, worth 22.1 trillion Kerguelean francs a year, is broadly diversified and led by the Information Technology industry, with major contributions from Furniture Restoration, Book Publishing, and Beef-Based Agriculture. State-owned companies are common. Average income is 67,577 Kerguelean francs, and evenly distributed, with the richest citizens earning only 2.6 times as much as the poorest.

Broken suspension systems are giving auto repair shops plenty of business, many friends and relatives of Leader have been given ambassador jobs in tropical island nations, collisions between bicycles and carnival floats are on the rise, and passive-aggressive congratulations cards inform mums-to-be that their pregnancy is their greatest achievement in life. Crime, especially youth-related, is totally unknown. Kerguelea's national animal is the beaver, which teeters on the brink of extinction due to widespread deforestation.

Kerguelea is ranked 99,567^th in the world and 5,290^th in Lazarus for Most Subsidized Industry, scoring 1,432.76 on the Gilded Widget Scale.