General

In the wake of the devastation wrought by the Warlord, many traditionally oppressed races found themselves suddenly free of the downward pressures exerted by the structurs that had kept them oppressed. In the vacuum of power left behind, some of these races truly began to prosper.

Kobolds of the Dragon isles.

These kobolds, largely of six clans, discovered that they were free, for the first time in their history, to create a society that was their own, not one built on simple survival under another creature's rule. With typically kobold practicality, the leaders of the six clans gathered in one place, atop a sweeping mountain at the center of the Dragon Isle, and there decided that they would not follow the mistakes of their predecessors.

They established the Empire of the Celestial Dragon that day, deciding that the clan heads would form a ruling council, and elect from their number an Emperor who would act as the titular head of this Empire. The council would act as a check on the Emperor's ambition - should he become despotic or violate the spirit of cooperation sweeping the clans, the clans could and would band together and bring overwhelming force to bear to facilitate his removal.

Upon the death of each Emperor, a new Emperor would be chosen by the Council of Elders. The Emperor's word was to be law, unless a majority of the Council took up the law and voted it down - otherwise, rulership was concentrated in the hands of the Emperor himself.

The council formally designed the Empire as an egalitarian place, where merit is rewarded with position and position is awarded with wealth. While the highest orders of the Empire are restricted to the Kobold people, any citizen of the empire can rise as far as their talent and ambition allow.

Social Position:

The HDE is fond of tests - as children grow, they're allowed to test for any number of things, ranging from admission to university to apprenticeships to simple academic and manufacturing achievement. Testing allows opportunity, and excelling at opportunities so garnered invites more testing for more opportunity.

In general, the HDE promotes those who are innovative, cunning, work hard and grow in wealth and expertise.