The Dual Republic of Hosokawa is a gargantuan, genial nation, ruled by Raiko Horikawa and Mei Yoneme with an even hand, and remarkable for its museums and concert halls, hatred of cheese, and punitive income tax rates. The compassionate, democratic, cheerful, devout population of 21.133 billion Hosokawans are fiercely patriotic and enjoy great social equality; they tend to view other, more capitalist countries as somewhat immoral and corrupt.

The enormous, socially-minded government juggles the competing demands of Education, Defense, and Industry. It meets to discuss matters of state in the capital city of Kōchi. The average income tax rate is 98.7%.

The frighteningly efficient Hosokawan economy, worth a remarkable 4,037 trillion Japanese Mons a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. The industrial sector, which is quite specialized, is led by the Tourism industry, with significant contributions from Information Technology and Book Publishing. Average income is an impressive 191,046 Japanese Mons, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

10-year-olds who struggle with integrating by parts are considered slow learners, the nation's Medal of Honour can be found as a free toy in breakfast cereal, engine room hooch is the drink of choice among the nation's navy, and political scientists despair as the national mascot election eclipses all others in voter enthusiasm. Crime is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. Hosokawa's national animal is the Blue Shark, which is also the nation's favorite main course.

Hosokawa is ranked 108,665^th in the world and 139^th in Hana Macchia for Largest Gambling Industry, scoring 1,480.11 on the Kelly Criterion Productivity Index.