Fiction:Khalite Commonwealth

Overview
The Khalite Commonwealth, or Khalite Empire to her enemies is an ancient and stagnant empire located mid-arm in its galaxy. Her borders are defined by the Great Rift, a region in space with no nebulae or stars save for a few scattered and planet-less red dwarf stars. On the opposite end of the rift is the sworn enemy of the commonwealth the Idyl. The Idyl are governed by a mix of social-Darwinism and an insectoid hive structure similar to ants. The Idyl are the only lasting enemy of the Khalite with all other races being absorbed into the commonwealth, displaced, or left alone. The Khalite Kingdom being the founding member of the Commonwealth and largest state plays the role of leader of the commonwealth. The various vassal and partner races of the commonwealth share the same currency, protector, navy, obligation to war and law but these are overseen by the Protector rather laxly. Each member state is allowed it's own government system with states in the commonwealth ranging from direct democracy, to fascism though the most common is monarchy. The governments are removed by force if they are deemed hostile to their neighbors or citizens. Each state in the Empire is granted a seat on the noble council, a sort of cabinet of advisers or secretaries, where the financial, diplomatic, moral, or social problems of the empire are addressed. Though it is a council the Protector of the Commonwealth has final say regardless of the council's requests. In addition the members of the council are required to elect a new Protector when their is no heir to the Khalite throne. Each state is required to build and maintain its own military to be called on by the King in times of need

Economy
The economy of the Commonwealth is laissez-faire in all but goods. Slaves, narcotics, WMD's, and other items deemed immoral by the council or protector are all forbidden within the Commonwealth. Any ship suspected of carrying illicit goods will be blown apart no questions asked. Because of this, smuggling and black-market's are all but nonexistent within the empire. However trading is also more dangerous as a result, with accidental or not so accidental deaths of innocent merchants, at the hands of trigger-happy pilots and ambitious captains, being uncommon but present. This strain on mercantilism has inspired many planets to become partially self-sufficient in terms of agriculture and construction, importing only scarcities and luxuries and never developing a dependency. In-spite of this several large trade routes exist which are less guarded than other regions.