The People's Republic of Karlos is a titanic, environmentally stunning nation, ruled by Karlos with an even hand, and remarkable for its complete lack of prisons, keen interest in outer space, and punitive income tax rates. The compassionate, cheerful population of 23.316 billion Karlosians are fiercely patriotic and enjoy great social equality; they tend to view other, more capitalist countries as somewhat immoral and corrupt.

The government — a sprawling, bureaucracy-choked, socially-minded morass — juggles the competing demands of Education, Environment, and Healthcare. It meets to discuss matters of state in the capital city of Karlosville. The income tax rate is 100%.

The frighteningly efficient Karlosian economy, worth a remarkable 4,699 trillion Karlos a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. The industrial sector, which is highly specialized, is mostly made up of the Information Technology industry, with significant contributions from Book Publishing and Tourism. Average income is an amazing 201,572 Karlos, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

The government subsidizes those who produce the worst results, things are looking up for patients accidentally prescribed erectile dysfunction medication, party leaders rely on horoscopes to create "ticket balance", and the government's foreign policy statements are less threatening than a World Assembly cease-and-desist letter. Crime, especially youth-related, is totally unknown, thanks to a very well-funded police force and progressive social policies in education and welfare. Karlos's national animal is the Bear, which is also the nation's favorite main course.

Karlos is ranked 2,860^th in the world and 24^th in Refugia for Most Cultured, scoring 218 on the Snufflebottom-Wiggendum Pentatonic Scale.