The Serene Kingdom of Phaliea is a colossal, environmentally stunning nation, ruled by President Cilo Reed with a fair hand, and remarkable for its complete lack of prisons, irreverence towards religion, and punitive income tax rates. The compassionate, democratic, cheerful population of 7.622 billion Phalieans are free to do what they want with their own bodies, and vote for whomever they like in elections; if they go into business, however, they are regulated to within an inch of their lives.

The enormous, liberal, socially-minded government juggles the competing demands of Education, Administration, and Healthcare. It meets to discuss matters of state in the capital city of Pandora. The average income tax rate is 96.8%.

The frighteningly efficient Phaliean economy, worth a remarkable 1,196 trillion Franks a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. The industrial sector, which is quite specialized, is led by the Information Technology industry, with significant contributions from Book Publishing and Tourism. Average income is an impressive 156,984 Franks, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

The slowest students feel vaguely targeted by their Mendelian Inheritance coursework, people with political aspirations study how to make balloon animals, the government has adopted a "Lightning Never Strikes Twice" approach to dealing with natural disasters, and the media seems excessively interested in what President Cilo Reed is wearing this season. Crime is totally unknown. Phaliea's national animal is the Golden Fox, which frolics freely in the nation's many lush forests, and its national religion is The Divine Light.

Phaliea is ranked 9,953^rd in the world and 67^th in The Leftist Assembly for Most Scientifically Advanced, scoring 408.52 on the Kurzweil Singularity Index.