The Kingdom of Nalaterri is a huge, environmentally stunning nation, notable for its daily referendums, compulsory military service, and irreverence towards religion. The hard-working, democratic population of 317 million Nalaterrians 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 medium-sized government juggles the competing demands of Administration, Law & Order, and Industry. It meets to discuss matters of state in the capital city of Imladris. The average income tax rate is 33.0%, but much higher for the wealthy.

The powerhouse Nalaterrian economy, worth 29.5 trillion pounds a year, is broadly diversified and dominated by the Information Technology industry, with significant contributions from Book Publishing, Basket Weaving, and Woodchip Exports. Average income is 92,935 pounds, and evenly distributed, with the richest citizens earning only 2.6 times as much as the poorest.

Citizens must have a license to operate a computer, dubiously qualified Skandilundian barristers keep referring to laws as 'government guidelines', the question of 'what is Leader's favorite color?' has been given a priority rating of burnt-orange, and Nalaterrian tourists are encouraged to hand out spare condoms to locals while on vacation. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Nalaterri's national animal is the cat, which frolics freely in the nation's many lush forests.

Nalaterri is ranked 28,439^th in the world and 31^st in Caer Sidi for Healthiest Citizens, with 8.54 bananas ingested per day.