Founded in Year 217 SSC, the Federation was originally a joint effort by several systems and three different species to provide safety, security, and sustenance to all people within their domains. Over time, humanity and the second species, the xiltra, came to dominate most of the military and civil postings thanks to their longer average lifespans. The military postings remained competitively earned based on merit until Year 399 SSC, but the civil service had devolved into heritable fiefs by Year 232. This was occasioned by the Federation Constitutional Court ruling that said that preference in selecting people was first to be for, “those of the same lineage,” to accomplish, “an exchange of power that least detracts from the common good.” It was with that ruling that the class of Administrators was created, for only higher-level administrative duties (as opposed to custodial or enforcement) were deemed needing in disruption-prevention.
This is not to say that some do not rise in the Administrators’ ranks above the station they were born into, or others sink lower–far from it. Administrative ranks are gained and lost with every generation, but by and large the Administrator class is a static one. As Administrators–human and xiltra almost without exception–took over the high ranking positions within the Federation’s military, they expanded the personal fiefdoms of their lineages across the entirety of the Federation.
Economically, the Federation is a mixture of corporatocracy and socialist imperium, with large corporations (usually owned by well-connected Administrator families) receiving large payments to provide food, clothing, shelter, heating, cooling, and small electronic devices (for entertainment) to all citizens. The cost, however, is that all jobs, family decisions, education, and religious preferences are either licensed or mandated and taxed. For an example: upon forming a household, men and women are required to have children according to their local area’s population growth quotas.
Newly annexed systems pay heavily into the coffers of the Federation due to ‘conversion costs’; basically, the cost to convert their economy to that of the rest of the Federation, and in practice a looting of valuable resources that ultimately go to feeding the core worlds, especially Central Bureau, the capital.
The Federation, despite its inefficient economy, is the most powerful of the normal ‘human’ nations (even though it is not only made up of humans) thanks to its sheer size and population, but even it must answer to the twin orders’ rules of war.