The Republic of Kwaj is a huge, genial nation, remarkable for its compulsory military service, keen interest in outer space, and national health service. The compassionate, democratic population of 324 million Kwajers enjoy a sensible mix of personal and economic freedoms, while the political process is open and the people's right to vote held sacrosanct.

The medium-sized government prioritizes Education, although Healthcare, Welfare, and Environment are also considered important, while Spirituality and International Aid aren't funded at all. It meets to discuss matters of state in the capital city of Ebeye. The average income tax rate is 54.5%, and even higher for the wealthy.

The Kwajian economy, worth 25.1 trillion Clams a year, is fairly diversified and led by the Information Technology industry, with significant contributions from Tourism, Book Publishing, and Trout Farming. State-owned companies are reasonably common. Average income is 77,447 Clams, and evenly distributed, with the richest citizens earning only 2.1 times as much as the poorest.

Burning twigs to keep warm while lost in the wild is now a felony, construction of the Really Big Hadron Collider is underway, lawyers turn down litigation cases and corporate work in order to focus on lucrative public defence work, and Kwaj has been recently classified as an international menace after 'liberating' several nearby territories. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Kwaj's national animal is the Hermit Crab, which frolics freely in the nation's sparkling oceans.

Kwaj is ranked 124,726^th in the world and 6,831^st in The North Pacific for Lowest Overall Tax Burden, scoring -1.94 on the Hayek Index.