The Republic of Phaialee is a titanic, cultured nation, ruled by President Chuu with a fair hand, and notable for its aversion to nipples, otherworldly petting zoo, and absence of drug laws. The compassionate, hard-working, democratic, cheerful population of 12.745 billion Phaialeens live in a state of perpetual fear, as a complete breakdown of social order has led to the rise of order through biker gangs.

The relatively small, corrupt, liberal, pro-business government prioritizes Industry, with Education, Administration, and Welfare also on the agenda, while Spirituality receives no funds. It meets to discuss matters of state in the capital city of Shinobu City. Citizens pay a flat income tax of 8.8%.

The frighteningly efficient Phaialeen economy, worth a remarkable 3,538 trillion Phai Dollars a year, is broadly diversified and led by the Tourism industry, with major contributions from Retail, Information Technology, and Book Publishing. Average income is an amazing 277,617 Phai Dollars, but there is an enormous disparity between incomes, with the richest 10% of citizens earning 1,527,355 per year while the poor average 25,597, a ratio of 59.7 to 1.

The nation's museums are real penny-pinchers, the nation's universities are often mistaken for foreign embassies, the nation's most "productive" diamond mine hasn't been operational for seven months, and Saturday morning cartoons feature full frontal nudity. Crime is totally unknown. Phaialee's national animal is the Rabbit, which is also the nation's favorite main course.

Phaialee is ranked 158,063^rd in the world and 2^nd in Grand Avalon for Largest Insurance Industry, scoring 823.23 on the Risk Expulsion Effectiveness Rating.