The Republic of Pholwatia is a small, environmentally stunning nation, notable for its punitive income tax rates, devotion to social welfare, and stringent health and safety legislation. The compassionate, democratic population of 29 million Pholwatians love a good election, and the government gives them plenty of them. Universities tend to be full of students debating the merits of various civil and political rights, while businesses are tightly regulated and the wealthy viewed with suspicion.

The large, socially-minded government juggles the competing demands of Welfare, Education, and Law & Order. The average income tax rate is 58.8%, and even higher for the wealthy.

The weak Pholwatian economy, worth 818 billion Lians a year, is led by the Door-to-door Insurance Sales industry, with major contributions from Information Technology, Basket Weaving, and Beef-Based Agriculture. State-owned companies are common. Average income is 28,233 Lians, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Members of Parliament operate under a PAYE scheme, scenic mountain valleys are flooded with water as damming projects get underway, mystics are claiming that a simultaneous rise in scepticism and education budgets is correlation rather than causation, and criminal convictions are routinely thrown out because the accused's grandmother didn't get to testify about their good character. Crime is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. Pholwatia's national animal is the Common Tailorbird, which soars majestically through the nation's famously clear skies.

Pholwatia is ranked 264,108^th in the world and 2^nd in The Peaceful Region for Highest Disposable Incomes, with 11,632.28 Standard Monetary Units.