So sort of a cross of the worst elements of Belgium, Lebanon and the Indian/Bangladeshi border?Here's a pretty crazy one for an aggressively stupid government. A state theoretically managed as a democratic federation of ethnic homelands, where everything is segregated down to the freaking neighborhood level because people don't all live in discrete ethnic blocks, so everything is this barely-comprehensible mess of bordergore and people can't move between different parts of the country and the government has to go through 16 different panels and ethnic governing bodies that all resent each other for the government being so screwed up every time anyone wants to build anything. The whole thing was cooked up in the '50s or something based on population dynamics at the time and has been constantly on the edge of shattering ever since.
So basically the entire thing is a completely dysfunctional mess that only sticks together because nobody wants to have the mother of all race wars. The economy's in the toilet and everything runs by the black market, youth rebellion mostly consists of deliberately trying to form a new ethnic identity out of frustration with the system and a desire to end the stupidity, because the government has trouble handling newly-declared ethnicities, and of course the government is completely nonfunctional and consists almost entirely of assholes yelling at each other.
It'd probably be an EU gone incredibly stupid.