The Republic of Happy Totoro is a colossal, safe nation, notable for its punitive income tax rates, devotion to social welfare, and stringent health and safety legislation. The hard-nosed, democratic population of 6.406 billion Happy Totoroans hold their civil and political rights very dear, although the wealthy and those in business tend to be viewed with suspicion.

The government — a sprawling, bureaucracy-choked, outspoken morass — juggles the competing demands of Healthcare, Education, and Welfare. The average income tax rate is 74.0%, and even higher for the wealthy.

The large but inefficient Happy Totoroan economy, worth 192 trillion yen a year, is extremely specialized and mostly made up of the Trout Farming industry, with significant contributions from Woodchip Exports. State-owned companies are reasonably common. Average income is 30,124 yen, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Education is transforming people into first-rate snobs, boats straying just metres away from the shore will raise the ire of the Coast Guard, the slowest students feel vaguely targeted by their Mendelian Inheritance coursework, and most voters only see their chosen representative visit once every election cycle. Crime is totally unknown, thanks to the all-pervasive police force and progressive social policies in education and welfare. Happy Totoro's national animal is the elephant, which frolics freely in the nation's many lush forests.

Happy Totoro is ranked 106,741^st in the world and 4,312^th in The North Pacific for Most Advanced Public Transport, scoring 812.96 on the Societal Mobility Rating.