The Federation of New Karelograd is a colossal, orderly nation, ruled by Igor Kivisto with an iron fist, and remarkable for its keen interest in outer space, compulsory military service, and devotion to social welfare. The hard-nosed, cynical population of 9.284 billion Karelogradians are ruled by a mostly-benevolent dictator, who grants the populace the freedom to live their own lives but watches carefully for anyone to slip up.

The medium-sized, corrupt, well-organized government juggles the competing demands of Defense, Education, and Industry. It meets to discuss matters of state in the capital city of Karelograd. Citizens pay a flat income tax of 73.0%.

The frighteningly efficient New Karelogradian economy, worth a remarkable 1,405 trillion Rubles a year, is broadly diversified and led by the Arms Manufacturing industry, with major contributions from Information Technology, Trout Farming, and Tourism. State-owned companies are common. Average income is an impressive 151,398 Rubles, but there is a significant disparity between incomes, with the richest 10% of citizens earning 453,518 per year while the poor average 39,502, a ratio of 11.5 to 1.

Things are looking up for sentient toilet bowls, public loudspeakers constantly tell citizens they are "happy people", delivery truck companies use hospital parking lots to store 16-wheelers, and the national symbol of New Karelograd is now always featured on a skewer. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. New Karelograd's national animal is the Bear, which is also the nation's favorite main course, and its national religion is Wansul.

New Karelograd is ranked 321,771^st in the world and 14,936^th in Osiris for Nicest Citizens, with 0.55 average smiles per day.