Månalfheim & Dagalfheim

Home of the Månalves (aka Moonlight Elves) and Dagalves (aka Sunlight Elves) respectively. The two "light" elven nations are on great terms with each other and citizens of one can pass freely to the other without restriction. These two nations share a short land border and a broad strait leading out to the sea. There is a strong maritime tradition among the elves, fishing and hunting rare sea monsters.

Regarding half-elves: The continuing occurence of half-elves speaks to a certain attraction between elves and humans, but half-elves have a hard time fitting in to upper-class society, being looked upon with pity at best. The lower classes; fishermen, hunters, farmers and such, generally don't have much of a problem with half-elves, since they're generally heartier than the average elf and willing to work.

Industries: Fisheries, Magical Goods & Instruction, Fine Goods

Government: Hereditary monarchy with a council of advisors drawn from the aristocracy.

Popular Representation: None

Law Enforcement: Each country maintains a Home Guards Regiment that function as a hybrid police/national guard. Each district is overseen by a captain of the guards.

Military: Each country maintains an army and a navy. Every elf is required to give a decade of compulsory service. In addition to the standard forces, there are a number of special regiments, such as the Royal Griffons (air cavalry mounted on griffons) and the Silver Fins (aquatic rangers & druids who work with trained dolphins & sharks.) There is also a sizeable merchant marine which can be mobilized at need.

The elves are unchallenged upon the sea. Any naval engagement is likely to go their way, absent some mitigating strategic factor. Their marines are tough and capable, but not numerous.

Practical Considerations
Arms & Armor: Most people are allowed to wear light armor if they so choose, for the world is full of danger and some protection can be the difference between life and death. Medium armor is reserved for law enforcement, though most opt for light armor outside of the most dangerous operations. Heavy armor is reserved only for military officers. Likewise, light melee weapons and shortbows are permitted to all, for self defense and hunting. Martial weapons can be had by citizens if they obtain a permit, for which they will require a valid reason and a fair sum of gold. Otherwise martial weapons are expressly reserved to law enforcement & the military.

Magic: The elven attitude towards magic is, if you've worked hard enough at The Art that you can cast a spell, you should be able to cast it. Likewise, if you can find rare spell components and have the coin to acquire them honestly, you are free to do so. Irresponsible use of magic will of course draw the authorities' attention, but outside of that most mages are free to go their own way.

International Relations
Svartalfheim: Strained. The "light" elves would like nothing more than to put the past in the past and have friendly relations with the dark elves, but the dark elves are (arguably reasonably) holding a grudge. There have been emmisaries exchanged but there are no official agreements, little trade, and no alliances.

Rikland: Cordial. Thriving trade and friendly diplomacy. The elves are aware that there are some "internecine disagreements" within Rikland, but adopt a "none of our business" attitude which Rikland quite welcomes. Subsequent to the war Rikland, Månalfheim, & Dagalfheim maintain a mutual defense agreement.

Gnimmelheim: Like nearly everyone else, the Elves view the Gnomes with suspicion and distrust, coupled with a deep disappointment that anyone could twist magic to such foul ends. The Elves were the first to suggest the Forbiddance and the trade restrictions on magical goods and spell components, an act for which many Gnomes harbor deep resentment.

Human Federation: Mixed. Elves do a good trade in export of Elven craft to the humans, when the humans can afford it. Most elves consider humanity a rabble, not terribly different from orcs though at least they behave themselves better and clean up nicely. There have been brief alliances with individual human kingdoms, but none have been lasting. (Certainly not on an Elven time-scale.)

Bonnechance: Cordial. Much better trade partners than the Humans, and Halfling culture is much in demand among Elven high society. Månalfheim & Dagalfheim are much invested in the rebuilding of Bonnechance.