The Federal Republic of Hostelia is a massive, efficient nation, ruled by PM Horváth Tamás with an even hand, and remarkable for its ubiquitous missile silos, complete lack of prisons, and pith helmet sales. The hard-nosed population of 3.897 billion Hostelians are fiercely patriotic and enjoy great social equality; they tend to view other, more capitalist countries as somewhat immoral and corrupt.

The large government juggles the competing demands of Defense, Education, and Administration. It meets to discuss matters of state in the capital city of Rakaca. The average income tax rate is 81.6%, and even higher for the wealthy.

The frighteningly efficient Hostelian economy, worth 483 trillion Krajcár - ₭Rs a year, is led by the Arms Manufacturing industry, with major contributions from Information Technology, Book Publishing, and Door-to-door Insurance Sales. State-owned companies are reasonably common. Average income is an impressive 124,127 Krajcár - ₭Rs, and distributed extremely evenly, with little difference between the richest and poorest citizens.

People faint regularly as they get stuck with compulsory vaccinations, surrealist houses shaped like mushrooms and volcanoes dominate the wealthiest neighborhoods, the saying 'break a leg' is now taken literally, and Rakaca's back alleys are rife with sausage eating. Crime, especially youth-related, is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. Hostelia's national animal is the Snowy owl, which soars majestically through the nation's famously clear skies.

Hostelia is ranked 17,866^th in the world and 149^th in Europeia for Highest Food Quality, scoring 123.93 on the Meeshlin-Starr Index.