Before L-Topia begin, it was once called Japan. An architeplago with peace loving people and a dark secrect (WWII, everyone). But then Zeon dump their G3 Gas on the country, killing nearly all of the population. And should kill them all if not for a benevolent god name L who descend from heaven to help them revive their country. After that divine intervention, L become the figure head and god of the country. Who now changed their name after him as a sign of bond.
The country have no standing army of it own. Atleast that what it say on paper. It won't need such a thing because it armed to the teeth with anti-matter ICBM. Every house in L-Topia have an ICBM warhead, giving to them by the state. Making a direct invasion to the country a foolish decision. Then there the guardian, a series of powerful super robot with quantum AI protecting them. Along with the Gespent personal trooper. Killing machine with Quantum Computer mainframe, design to counter every possible move of the enemy. 100% of the population are civillian.
The island nation of L-Topia is entirely self-sufficent and doesn't need outside help. It become prosper due to a system of invisible gambling den, whom ruler of resourced poor country betting their whole country for a chance of resource help. Resulting in a mass annexing chain, whom L-Topia keep grabbing those poor country into their own. This also grant L-Topia access to a pool full of "living resources" of "human". That they use for their various secrect "terrorist cell". Those "living resources" can also be used as a test subject for biological weapon research, cyborg conversion research and various other experimentation.
It is true that L-Topia doesn't have a standing army, and those AI powered killing machine and nuke are use purely for self-defense. But it can't look another way when enemy threaten it so it have to use terrorist to sabotage the enemy country.
They also flourished with various other activity like drug trafficking, black mailling, organ trafficking, human trafficking, boot-legging, and high-profile "fun bussiness". Where customer pay for a night with high profile royal princess belong to annexed country. And after that, they used various account to stream the footage on Internet for more money.
Resourced wise, the country use matter replicator that can turn transwarp energy into pure matter. Making the country stockpile become effectively infinite.