My nation began to take shape before I ever found CN or P&W. I was assigned by my teacher in 7th grade to design a nation (in a group with some morons) that included all the things we had been covering in the social studies/history/government/economics class. So, we (meaning I) start working on all these things such as govt, economy, military, cities, export-imports, everything I could think of. Even the history behind the nation. With my mind wired for absorbtion of history, strategy, and historical fiction, the project was like giving my a blank check. I went crazy. The only thing that has changed over time is the name. Once "Humbananawingaburgah" (Hum-banana-winga-burgah said with a British accent), my nation is now known as Crakatoa. I named it after something I thought I heard a friend say one day and later found out the new name was very similar to the Indonesian volcano Krakatoa. In 10th grade Government and Economics class, we had another project similar to the first only it was cut short by poor weather days. This time, everything I had written down was transcribed into a Word document and Excel spreadsheet. The basic history is as follows. More to come when I have an evening to relax and type again.
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The island nation that would come to be known as Crakatoa was first discovered by Native American groups traveling up the West Atlantic coast who were shipwrecked there after the Gulf Stream pulled them off course. They new tribe would trade irregularly with the mainland and until 1629 was completely unknown to the Europeans that had been coming across the Atlantic Ocean. It was not the British that stumbled across Crakatoa but rather, a sect of disgruntled Germans sailing out of Amsterdam following their alienation in the Fatherland.
Once the Germans had arrived on the island they named it after, how they heard and interpreted, the Native word for the island. Over time the word evolved into the modern name for the island nation, Crakatoa. As the population grew the struggles of the Old World began to resurface and due to the small size of the nation, many kinds of experimental and un-heard-of governing systems were established but all failed.
In a long period of turmoil that lasted from approximately 1690 until 1745, the nation remained ignored by European powers. Although they were aware of the island nation, the weakness of the government structure, when there was one and not just a fractured group of small counties, was not a threat to the European powers who also did not need the ports of Crakatoa. The island was also near enough to the mainland that the British did not fear that it would get out of control and endanger that colonies without being noticed and eradicated.
In 1745, a charismatic leader by the name of Nikoluas Sternberg united all of the fractured peoples of Crakatoa under a single banner. This began a transitional period in which Sternberg (meaning dweller upon the starry mountain) established with his family and trusted companions, the framework of "die Bundesrepublik Crakatoa," the Federal Republic of Crakatoa. He assumed the position of chief executive, the Chancellor, and appointed his closest male family and friends to be his advisers. Together, they created a pseudo-republic in which only approved members of the population could vote for the elected offices.
In the years to come, the Chancellor's seat would also be the Greater Justice in the nation and the Highest Priest of the nation. The consolidation of power allowed the line of leaders to make radical changes over time but none were as significant then to begin full scale integration of the industrial nation into the global market in 1862. Ports were opened to exports and some imports. They would be the first nation to recognize the sovereignty of the Confederate States of America and would export to them metal, weaponry, and other supplies in an effort to sustain the fight against the United States of America which was propagated as the aggressor. The government would after this era become very anti-american. As the nearest neighbour of the island nation, the Chancellor would bring his people together in a common fear for the "Ravenous Giant Next Door". The trade with Europe and the Caribbean would bring new products and abilities to Crakatoa. It would maintain a standing Navy and was the first in North American to have an all ironclad Navy.
During the early 1900's the Chancellor ignored the actions of Europeans and Americans and instead focused on modernizing its communication networks and infrastructures such as the harbor expansion in Charlottes Port, the largest habour on the island. during the 1930's the people of Crakatoa favored the fascist revolutions in Europe. Due to the restricted trade and the stockpiling of imported resources, as was the policy of the nation, the island was capable of escaping the global recession that so terribly gripped the neighbouring Americans. On several occasions, the Chancellor provided monetary support to the fascist Spanish leaders. In the years to come, the smaller ports of Crakatoa would be open to the docking of German U-boats. However, due to an offense made by Adolf Hitler's minister to Crakatoa, the ports sabotaged numerous German vessels and in May of 1943, unleashed the Crakatoan Navy on the U-boats.
American relations improved in the later years of the war due to the aid in the Atlantic. However, after the Second World War, relations deteriorated again as the nation of Crakatoa was viewed as a fascist/communist stronghold that was "too close to home." In response to this, the Chancellor closed off all trade and travel to the United States. Remaining quiet throughout most of the Cold War, the Chancellor did seek to attain nuclear weapons from the Soviet Union. The tremendously close proximity of the island to the cities of Washington DC, Philadelphia, New York, and Boston made the suggestion irresistible to the Kremlin. The Chancellor of the day attained dozens of ICBM's from the Red Army and then ceased all communication with the Soviets. The closeness of Crakatoa that made them so sweet to the mouth of the USSR was now preventing them from retaliating at the small island for the theft of the nuclear warheads, for an attack on an island so close to the American mainland would surely trigger war.
Post-Cold War, the nation opened up once again to the European and American markets. It still remains a very closed population with an iron discipline and military. With nearly three quarters of the nation's workforce employed by the military, the island and her defensive infrastructure make her an impenetrable island fortress.
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tl;dr: I don't know, I've been typing for an hour or more and I'm too tired to go back and sum it up. Just read it, dammit.