The Duchy of Karelia is a colossal, efficient nation, notable for its compulsory military service. The hard-working, devout population of 8.858 billion Karelians are free to succeed or fail in life on their own merits; the successful tend to enjoy an opulent (but moralistic) lifestyle, while the failures can be seen crowding out most jails.

The relatively small, moralistic, pro-business government is primarily concerned with Spirituality, with Law & Order, Defense, and International Aid also on the agenda, while Environment and Industry are ignored. Citizens pay a flat income tax of 9.3%.

The very strong Karelian economy, worth 532 trillion kronor a year, is fairly diversified and led by the Gambling industry, with major contributions from Tourism, Uranium Mining, and Trout Farming. Average income is 60,095 kronor, but there is a significant disparity between incomes, with the richest 10% of citizens earning 183,580 per year while the poor average 15,248, a ratio of 12.0 to 1.

Karelia has designated Karelia City as its capital city, Leader has just been declared ruler of Karelia in an international press conference, the travel industry is booming as pregnant women book tickets for "weekend trips" overseas, and a major religion has been named as Karelia's national religion. Crime, especially youth-related, is relatively low, despite the fact that it is difficult to make it through a day without breaking one of the country's many laws. Karelia's national animal is the cow, which can occasionally be seen sifting through garbage in the nation's cities.

Karelia is ranked 202,718^th in the world and 14^th in Terranova for Smartest Citizens, with 20.84 quips per hour.