Naggaroth
Naggaroth is the home of the Dark Elves in Warhammer Fantasy and is portrayed as a dark, dingy terrible place to live, of black trees and high mountains full of raging monsters. It is funny since it is based in location in the real world to America and Canada so this may hit a bit too close to home for some people.
Anyway the Dark Elves arrived, decided it was a perfect place to set up shop and made six big cities to live in, each one such a pleasant land of pain and torture. Yes Naggaroth runs on a slave labour economy and it is practically the main industry of the land.
Each of the six dark elf cities serves a vital function in the kingdom and besides a few odd balls no dark elf lives outside these walled cities for fear of the monsters although it stands to question if it is any safer with all those loons inside the walls.
Malekith the Witch-King rules the land with an iron fist and woe betide anyone that get any other ideas...
The kingdom would be constantly raided by chaos warriors from the northern wastes if it wasn't for many happy (read forced) volunteer warriors who man the series of fortress like watch towers that keep the marauders at bay. Even so it is a thankless task and only the threat of death keeps them there.