The Federal Socialist Republic of Grand Caledonia is a gargantuan, genial nation, ruled by Premier Eric O'Grady with a fair hand, and renowned for its multi-spousal wedding ceremonies, daily referendums, and devotion to social welfare. The compassionate, democratic population of 23.187 billion Caledonians hold their civil and political rights very dear, although the wealthy and those in business tend to be viewed with suspicion.

The government — a sprawling, bureaucracy-choked, liberal, outspoken morass — juggles the competing demands of Education, Environment, and Healthcare. It meets to discuss matters of state in the capital city of Canterbury. The average income tax rate is 98.3%.

The frighteningly efficient Grand Caledonian economy, worth a remarkable 3,270 trillion Caledonian Shillings a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. The industrial sector, which is extremely specialized, is mostly made up of the Tourism industry, with significant contributions from Book Publishing. Average income is an impressive 141,050 Caledonian Shillings, and evenly distributed, with the richest citizens earning only 2.0 times as much as the poorest.

Social networking sites have discussion groups devoted to planning terrorist attacks, slackers at work are told to "crack on with it", battlefield gains are quickly lost when enemies don't respect a time-out, and people with political aspirations study how to make balloon animals. Crime is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. Grand Caledonia's national animal is the Zealandian Moa, which frolics freely in the nation's many lush forests.

Grand Caledonia is ranked 290,420^th in the world and 211^th in Democratic Socialist Assembly for Most Corrupt Governments, with 0.28 kickbacks per hour.