Heh. I'm no Admin here at ENWorld, but I would say it anyway: Don't use Real World Countries for reference here. Tis not allowed. If that continues, one of the Admins might decide to become *EVIL* and do bad, bad, bad things to us!
Now ...
Dambrath is not a realistic society, obviously. It is a madhouse where the top lunatics run the show. Because the two top mad dogs are deities, there is no easy way to reign them or their creation in (although Bane the Tyrant GREATLY resents this usurpation of his tyranny, and would ally with the 'good' deities to stop Dambrath.)
Dambrath works because two deities are cooperating to make it work. Otherwise, it would self destruct in a heartbeat. But the deities are there, the Power of Evil is there, madness is institutionized and self-perpetuating, and thus you have this cancerous blot on the continent of Faerun. Or, as Grishnakh would have said: 'they're as bad as the others, the maggots and the apes of Luzburg!'
I did not wish to make Dambrath more realistic (ala The Picture of Dorian Gray) because it would have, basically, been too painful. What is realistic, can be very unpleasant (the more realistic films are, for example, the higher the rating they get: from P to PG to PG-13 to R to NC-17.)
Dambrath is a prison society, and all of it's people are slaves. Don't tell them that; they'll kill you for the insult (tis the greatest of honor to fight and die for Loviatar, Lolth, and Evil!)
Slaves in Dambrath are always foreigners. Those in Dambrath who commit crimes so awful as to reduce them to slavery, are instead executed (or, for slightly lesser crimes, turned into undead - such as children who cannot make the grade in the academies, even with 'help' from their teachers.)
Slaves are not worthy of the privilege of working for the Realm. The PRIVILEGE of cleaning a street or sewer, or polishing a person's shoes, belongs solely to the privileged people of Dambrath! Not to slave garbage.
No, slaves are worthy only of being used for amusement, gratification, or magical experimentation (needless to say, very few slaves live long, or wish to live long.)
So Dambrath departs from the model of a large slave population working while the elite enjoy themselves. In Dambrath, the 'elite' work themselves to death (especially those in charge) while slaves sit in pits and wait their turn as 'amusement' or 'reward' for said elite.
Not very nice.
If Dambrath has it's way, it will wage war upon the whole of Faerun, destroying each and every city and Realm in it's turn, exterminating every people, until Faerun is a desert wasteland. All for the sheer pleasure of killing, torture, mayhem, and other unthinkable things.
This is why, see, we have those critters called *Paladins.* Someone has to go and do the dirty jobs of the world (such as wiped out cesspools like Dambrath) and paladins are such people (although the occasional Exalted also gives it a try.)
Then again, argue the paladins and exalted, if the Lord's Alliance, Cormyr, Halruaa and Luruar could only ally and get off their duffs, their combined might could eradicate this nuthouse for once and all. But they just can't seem to get the energy to get off their gilded thrones!