Hrm so nation idea.

Outsiders with slightly higher technology and lower population, if that needs more balancing they might also not be liked by the volcano.
The nation is united under a "Master race" which usually carry enchanted equipment and are usually the only one with any magical capability . however, not all of the people agree with the master race's teachings and many plot against the nation from within, or plot against other races within the nation. Racism is a real problem for them.