This learning resource aims to equip students with the ability to critically assess the political landscape of the City-State of Aethelgard, focusing on the diagnostic evaluation of trade barriers and militia conflicts through the lens of Federalism and the Social Contract. The resource outlines various activities that guide students in exploring geopolitical data sheets, diagnosing political failures, and understanding the relationships between different districts. Students will apply foundational political concepts to analyze the lack of central authority and the implications of district militias on governance. Activities include categorization of trade barriers, observation tasks on inter-district relationships, and a structural analysis report to assess failure points in the current system. A challenge is presented for students to propose reforms that maintain district identities while addressing the existing conflicts and crises.