The Penguin Land of Xiaolon is a massive, safe nation, ruled by Penguinson with an even hand, and renowned for its keen interest in outer space, parental licensing program, and restrictive gun laws. The compassionate population of 2.108 billion Xiaolonians are fiercely patriotic and enjoy great social equality; they tend to view other, more capitalist countries as somewhat immoral and corrupt.

The medium-sized government juggles the competing demands of Administration, Defense, and Education. It meets to discuss matters of state in the capital city of Penguinland. The average income tax rate is 62.7%, and even higher for the wealthy.

The powerhouse Xiaolonian economy, worth 223 trillion Penguineuros a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. However, for those in the know, there is a slick, highly efficient, fairly diversified black market in Arms Manufacturing, Tourism, Information Technology, and Book Publishing. The private sector mostly consists of enterprising ten-year-olds selling lemonade on the sidewalk, but the government is looking at stamping this out. Average income is an impressive 105,802 Penguineuros, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Polychromatic seas of leaves blanket the ground while sewers and drain pipes are clogged by their detritus, the government is paving paradises to put up parking lots, scientists regularly clone human beings for research purposes, and children are terrified that the 'flying police monster' will come to take them away in the night. Crime, especially youth-related, is totally unknown. Xiaolon's national animal is the Penguin and its national religion is Penguinism.

Xiaolon is ranked 248,376^th in the world and 9,381^st in Balder for Largest Gambling Industry, scoring -6.13 on the Kelly Criterion Productivity Index.