The Federal Republic of Morgundy is a mammoth, efficient nation, ruled by Henryk Malstein with an even hand, and renowned for its sprawling nuclear power plants, compulsory military service, and ubiquitous missile silos. The hard-nosed, hard-working, democratic, devout population of 8.501 billion Morgundians have some civil rights, but not too many, enjoy the freedom to spend their money however they like, to a point, and take part in free and open elections, although not too often.

The relatively small government juggles the competing demands of Defense, Industry, and Education. It meets to discuss matters of state in the capital city of Hercegna. The average income tax rate is 27.4%, but much higher for the wealthy.

The frighteningly efficient Morgundish economy, worth a remarkable 1,285 trillion Kunas a year, is broadly diversified and led by the Tourism industry, with major contributions from Information Technology, Arms Manufacturing, and Retail. Average income is an impressive 151,245 Kunas, and evenly distributed, with the richest citizens earning only 2.2 times as much as the poorest.

Exports are stamped with "made by the invisible hand you commies", the military is slashing spending on conventional arms and diverting it to spending on prosthetic arms, major cities shut down as their local sports team takes to the field every day, and excessive wheelchair ramps on government buildings have been compared to theme park attractions. Crime, especially youth-related, is totally unknown. Morgundy's national animal is the Borzoi, which frolics freely in the nation's many lush forests, and its national religion is Hustian Church.

Morgundy is ranked 88,037^th in the world and 24^th in Conch Kingdom for Largest Insurance Industry, scoring 2,468.65 on the Risk Expulsion Effectiveness Rating.