The Kingdom of Karlowac is a small, orderly nation, remarkable for its barren, inhospitable landscape, triple-decker prams, and irreverence towards religion. The hard-working, cynical population of 36 million Karlowacians 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 large, well-organized government juggles the competing demands of Welfare, Law & Order, and Education. The average income tax rate is 44.9%, but much higher for the wealthy.

The Karlowacian economy, worth 1.29 trillion Arkines a year, is fairly diversified and led by the Gambling industry, with major contributions from Retail, Door-to-door Insurance Sales, and Information Technology. Average income is 35,909 Arkines, and evenly distributed, with the richest citizens earning only 2.5 times as much as the poorest.

Money that should have gone to charities is instead spent on monitoring them, attempts to inform people about their unclaimed property are often mistaken for telephone scams, supermarkets must refund spoilt milk even six months after the sale, and parents tell their children 'what a lovely mistake you turned out to be'. Crime is totally unknown, thanks to the all-pervasive police force and progressive social policies in education and welfare. Karlowac's national animal is the lion, which teeters on the brink of extinction due to widespread deforestation.

Karlowac is ranked 155,354^th in the world and 2,426^th in the Pacific for Most Patriotic, with 8.53 flags saluted per person per day.