The Federal Republic of Vallholm is a huge, efficient nation, remarkable for its museums and concert halls, pith helmet sales, and anti-smoking policies. The hard-nosed, hard-working, cynical population of 540 million Vallholmians are ruled with an iron fist by the corrupt, dictatorship government, which oppresses anyone who isn't on the board of a Fortune 500 company. Large corporations tend to be above the law, and use their financial clout to gain ever-increasing government benefits at the expense of the poor and unemployed.

The relatively small, corrupt, moralistic, well-organized government juggles the competing demands of Defense, Law & Order, and Education. It meets to discuss matters of state in the capital city of Azval. Citizens pay a flat income tax of 15.5%.

The powerhouse Vallholmian economy, worth 51.6 trillion Valls a year, is broadly diversified and led by the Information Technology industry, with major contributions from Book Publishing, Arms Manufacturing, and Uranium Mining. Average income is 95,603 Valls, but there is a large disparity between incomes, with the richest 10% of citizens earning 389,992 per year while the poor average 15,537, a ratio of 25.1 to 1.

New arrivals are asked the location of the Minister of the Interior's birthmark, people reciting Shakespeare have become a common sight, tax avoidance is a serious affair, and citizens are expected to be proficient in at least five languages. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Vallholm's national animal is the Iguana, which can occasionally be seen sifting through garbage in the nation's cities.

Vallholm is ranked 98,097^th in the world and 2,130^th in the South Pacific for Lowest Crime Rates, with 66.24 law-abiding acts per hour.