VENICE
Trade. It is the lifeblood of civilization. Once however ether was unleashed upon the unsuspecting world, it was no longer true. Decades were required until Europe recovered. Once that happened, however, in the Venetian lagoon, Venice was reborn. With a single goal in mind. To make money. Ether, soon, as it turned out, had it's beneficial sides that didn't involve smothering people with canons. Specialized ships needed wind in their sails no longer.
However, had Venice been stuck in the lagoon for all eternity, it would surely choke. Expansion soon began. The critical port of Trieste was seized, followed by Padua and Verona. Later on, as time went by, Sicily and Sardinia were subjugated and loyal (as far as possible) administrators were installed.
In 1543, an ancient debt by a remnant crusader state proved to be an opportunity to expand. The Knights of Crete took a loan long time ago, still in the age of the Crusades. But the Venetian bank never forgets, and it decided it was time enough to get back their debts. They repossessed the island, and the remaining knights had to continue pay their debts by serving as defenders for the isle. As it turns out, according to the calculations of the Venetian bank, repossessing Crete and all of its buildings accounts for approximately 75% of the loan with interest. They also calculated that at this rate, it'd take 5 generations until the knight's descendants could leave the island.
But the biggest, if riskiest, hit was Suez. A merchant named Giovanni Belini was visiting Egypt on a trading mission in 1644. He was a smart man; he graduated from the University of Padua. He noticed that the sea level between the Mediterranean and the Red Sea are the same. And Venice was at that moment suffering; spices and other exotic stocks from India and the New World were flowing in, threatening its traditional position. The Doge and the families were frantically looking for a solution. Once he returned, he laid out that idea. It was expensive; no doubt. The Mamelukes also weren't exactly desiring to give out Suez. Not that the Venetians would leave an eventual Suez Canal in their hands, anyway.
The best and brightest minds of Venice were put to work, while Venice was warring against the Mamelukes in a brutal duel for Suez. In the end, however, in 1648, they yielded. Suez was officially controlled by Venice. Another things happened in late 1648. A plan, for La Grande Trapano, or the Big Drill, which would be a rather unwieldy, ether-powered drill designed to plough through the sands and rocks of Suez. It had to be build in Crete, as the distance from Venice to Suez was too big. In Venice, however, the Arsenal had to create the ship that had to transport the drill - an enormous ship, bigger than any of the treasure galleons made by colonial nations. It was an all-or-nothing affair. If this failed, Venice would collapse.
1649 would be the year the drill would arrive in Suez, but even with the ether, which turned out to be not enough, it still took one year. But yet...On 21st April, 1650, the Venetian Suez Canal was opened. It created a boom in the Venetian economy, one that still carries them to this day. It is calculated by the Venetian bank, that the profits by Venice made repaid the costs for the construction (and the later fortification of the Canal) in nearly 45 years.
As far as governing goes, Venice is a republic. Elections come in two parts: first, oligarchic families choose candidates, which can't belong to their or any other family (usually from other minor families that have shown their worth and that their representatives are able and just), and then, the rest of Venice's population elects one among the candidates. Considering however that much of the population is usually under the control of one or another family, that sometimes feel like a formality, as those under said family's influence are usually reminded kindly that if they don't vote for the proper candidate, consequences will be swift.
The Doge usually serves Venice. Venice however is the congregation of a large number of families. So, in a rather loopsided way, he serves these families. The position of a Doge is for-life, but life is never necessarily long. Most Doges however are smart enough to realise when to stop and retire.