The Kingdom of Phaialee is a massive, genial nation, ruled by Prime Minister Champ with an even hand, and renowned for its museums and concert halls, daily referendums, and smutty television. The compassionate, hard-working population of 4.251 billion Phaialeens enjoy extensive civil freedoms, particularly in social issues, while business tends to be more regulated.

The large, liberal government juggles the competing demands of Administration, Industry, and Education. It meets to discuss matters of state in the capital city of Shinobu City. Citizens pay a flat income tax of 93.4%.

The frighteningly efficient Phaialeen economy, worth 792 trillion Phai Dollars a year, is fairly diversified and led by the Information Technology industry, with major contributions from Tourism, Book Publishing, and Retail. Average income is an impressive 186,501 Phai Dollars, but there is a significant disparity between incomes, with the richest 10% of citizens earning 633,346 per year while the poor average 40,516, a ratio of 15.6 to 1.

Newly-peaceful nations are forced to use assault rifles as farming tools due to a lack of funds for purchasing anything else, children prefer to begin their day with push-ups rather than breakfast, UFO sightings are listed daily in the morning news, and the arms industry is strictly regulated. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Phaialee's national animal is the Rabbit, which frolics freely in the nation's many lush forests.

Phaialee is ranked 90,292^nd in the world and 5^th in Grand Avalon for Least Corrupt Governments, with 93.56 percentage of bribes refused.