The Republic of Karainadu is a tiny, socially progressive nation, remarkable for its state-planned economy and irreverence towards religion. The democratic population of 10 million Karainans love a good election, and the government gives them plenty of them. Universities tend to be full of students debating the merits of various civil and political rights, while businesses are tightly regulated and the wealthy viewed with suspicion.

The medium-sized, outspoken government juggles the competing demands of Education, Welfare, and Administration. The average income tax rate is 38.7%, but much higher for the wealthy.

The developing Karainan economy, worth 314 billion Karai 𑿀s a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. However, for those in the know, there is a slick, highly efficient black market in Trout Farming, Information Technology, Woodchip Exports, and Pizza Delivery. The private sector mostly consists of enterprising ten-year-olds selling lemonade on the sidewalk, but the government is looking at stamping this out. Average income is 31,499 Karai 𑿀s, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Government bureaucrats devote many man-hours to trying to measure unquantifiables, the World Republic Games have been won again by Karainadu as no other country cares enough to compete, parking lots are littered with coffee cups and doughnut crumbs, and it is against the rules of boxing to hit above or below the belt. Crime is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Karainadu's national animal is the Marsh Elephant, which frolics freely in the nation's many lush forests.

Karainadu is ranked 296,040^th in the world and 3,817^th in the South Pacific for Largest Gambling Industry, scoring -11.06 on the Kelly Criterion Productivity Index.