Palau

Palau is an island nation located east of Philippines in the Pacific Ocean. Established in 1994, Palau is notable for being one of the few independent nations that is too young to legally consume alcohol in most places. Luckily, I'm pretty sure its location constitutes international waters, meaning that Palau is also allowed to gamble and marry other nations of the same sex. The population is around 20,000 (or a little less than that of Laramie, Wyoming, if that sounds more impressive). The capital is Ngerulmud, which has a smaller population than any other national capital and can only be pronounced properly by someone who is having a stroke.

"Hey, any ideas for our flag?"
"How about a big yellow dot, slightly off-center, on a field of blue?"
"Yeah! But not regular blue. Like, 'Miami Vice' blue."
"You're a goddamn genius, you know that?"
"Yes. Yes I do."