Zilargo is a nation of primarily gnomes in southwestern Khorvaire, between Breland and Darguun. The gnomes have lived in the region for thousands of years, even the Dhakaani have records of them, and they have thrived despite the frequent conflicts that surround them. Somehow, Zilargo has almost always managed to maintain their independence, even against Dhakaan and Galifar.
When Galifar came for Zilargo around 5 YK, the gnomes met his armies in the valley north of Dragonroost, and immediately surrendered. Despite this, they managed to negotiate with the king and became an independent province within the Kingdom of Galifar, Galifar got to win his war and Zilargo got to remain independent, and without a shred of violence.
Zilargo spent much of the Last War as a neutral observer, but eventually threw it's lot in with Breland in 962 YK. Even formally aligning themselves with Breland, the gnomes of Zilargo avoided most of the fighting, instead providing Breland with intelligence and elemental binding services. Zilargo has emerged from the war better off than most of the nations, they didn't lose any land and Breland is in their debt for services rendered during the war.
Despite being the smallest nation in Khorvaire, Zilargo exports an astonishing array of goods and services. The Zil have a reputation for diplomacy, and so translators, advocates and mediators from Zilargo are highly sought after all over the continent. House Sivis has an active presence in the nation, regulating these services and facilitating communication across national borders. In addition to that, Zilargo has the Korranberg Chronicle, which is shipped throughout Khorvaire, making it the most widespread source of news on the continent. Zilargo is home to the finest shipbuilders in the world, and even the princes of the Lhazaar Principalities travel to Trolanport to purchase or commission Zil vessels. Supprting this, the Zil have secrets of elemental binding that are integral to the creation of Elemental Galleons and Airships, which they refuse to share and that House Cannith has yet to reproduce, forcing the house to work with Zilargo.
Life & Society
At first glance, Zilargo appears to be a paradise. The streets are bright and clean, everyone seems happy and helpful, and crime is all but unheard of. The Zil gnomes have a great thirst for knowledge, everything from the smallest bit of gossip to state secrets that could change the political landscape of Khorvaire. This thirst for knowledge influences much of Zil society, which teems with layers of intrigue and blackmail that are not apparent to outsiders. Though the Zil engage in gossip and politics with impunity, they generally aren't malicious, they tend towards jobs and roles that allow them to learn and quench their thirst for knowledge; Indeed, Zilargo has some of the finest artificers in Khorvaire, separate from House Cannith, and the national interest in history means that their historical records are immaculate.
The Zil are helpful, cheery, and usually willing to lend a hand to those in need, and sometimes this is exactly what it seems to be. Sometimes, however, this is a carefully curated illusion, as the Zil have a paranoid streak and any information they have about someone is information that can be used against them if need be. The helpful Zil gnome will listen to your problems and they might even help you to solve them, but they will definitely remember every detail and how they could use it against you in the future if your relationship sours. This is a generalisation, and the Zil are people just like everyone else so not all of them are going to be ruthless schemers. Sometimes, they are exactly as they appear to be, friendly, cheerful folk who enjoy helping others. Sometimes, they aren't.
For the most part, the government rules with a light hand and takes little notice of the daily goings on. There are no visible guards or law enforcement in the streets, and yet Zilargo has the lowest crime rate in Khorvaire. This can often trip up visitors to the country, who are taken aback by the lack of visible policing and assume that crime must be rampant. Whilst life in Zilargo is a grand political game, there are rules, and these ruels are enforced by The Trust, a secret police force that removes any threats to Zilargo or it's people. Whilst most people in Zilargo are living within a web of intrigues, they are safe from the Trust as long as they don't break any laws and don't threaten the state. Violence draws the attention of the Trust, but intrigue is perfectly acceptable and safe.
Outsiders find the idea of the Trust terrifying, the idea that the state can have someone killed is an uncomfortable one. The people of Zilargo don't feel this way, however, they built this system and are happy with it; their streets are safe and they get to do what they love. The Zil genuinely trust The Trust, and most Zil gnomes would find the idea of the Trust abusing it's power to be laughable.
Family is extremely important to the Zil, who find it essential to their wellbeing to have someone that they can trust without fear of betrayal or manipulation. Whilst families may engage in politics for individual positions within the family, betrayal of one's family is practically unheard of in Zilargo, and would be met viciously by Zil society at large if such a betrayal were to be uncovered.
Fashion
Most Zil gnomes like bright colours and loose flowing designs, and they frequently incorporate illusions into their appearance. Zil tailors specialise in glamerweave and shiftweave, enchanting the cloth to display animated patterns or images of far away scenes. The Zil are also fond of hats, and a typical street in Zilargo will have as much variety in headgear as you'd expect to find in a hattery. The gnomes are excessively fond of ornamentation of any kind, and those who cannot afford or don't wish to wear precious stones will make do with finely crafted ornaments made from cheaper materials such as copper, wood, or glass.
Government and Politics
Zilargo is a democracy, ruled by The Triumvirate, a council composed of a representative from each of the major cities of Zilargo; Trolanport, Korranberg and Zolanberg. Originally, the Triumvirate was founded as an oversight commitee for the Library of Korranberg, but it's powers and duties slowly expanded to cover the entirety of Zilargo.
Each of the three cities that make up the Triumvirate has its own Council of Nine, a democratically elected council of nine representatives drawn from those cities, who manage the local running of those communities. The democratic process is influenced heavily by the intrigues that go on every day in Zil society, and who has the most power at any given moment within a city is often determined by who has the juiciest blackmail on the others. This sounds dystopian, and it is! but the gnomes are united in their desire to see Zilargo succeed and to maintain their freedom and quality of life, and so the political games never seem to go too far. The gnomes enjoy the game itself more than the winning, and too much power consolidation would take the fun out of it for all of them.
Reporting directly to the Triumvirate is The Trust, a secret organisation that protects the interests of Zilargo both within and without its borders. There is a Trust coordinator in each city who works with the local Council of Nine, and effectively spies on it's population. The Trust is responsible for keeping Zilargo safe, and that sometimes means that threats need to be forcefully removed, which the Trust is empowered to do. The idea of a secret organisation with the legal powers to eliminate individuals who threaten Zil society is a scary one, but the people trust the Trust not to abuse it's power, and perhaps surprisingly, it doesn't. Above all, the Trust is loyal to Zilargo.