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Author has written 5 stories for Naruto.
Fair's fair is complete.
With the latest update in What it Takes to be Hokage, readers seem to have forgotten the prologue. . .
How the Naruto world works according to Kishimoto . . .
Masashi Kishimoto: The world outside of the ninja is pretty normal. People make their living by running businesses, et cetera. Konohagakure, the Village Hidden in the Leaves, is the military part of the country. Hinokuni, or the Land of the Fire, provides Konohagakure a place to live, and in return, the resident ninja protect the country as a whole, similar to a military force.
As for the government, the daimyo, or warlords, govern the lands and run the political system and the bureaucracy.
Each country has warlords at the top, and its military has its own leaders. In America, you have a president at the top, but you also have the military general at the top of the military. The states have more power than the ninja, but since the daimyo don't cooperate with each other, I guess coup d'etats happen rather frequently. The world is not yet solid [laughs, but what you see in the story is not everything in the world of Naruto.