We are on Coruscant, which is, apparently, the seat of the Republic's government in this galaxy. In mine it was Hosnian Prime until we blew it up, but that doesn't matter here. Currently it appears that the galaxy has been invaded by an heretofore unknown species called the Yuuzhan Vong. The Agency told us about that.
I have been watching the holonet news for the past few hours to get a better handle on the situation we currently find ourselves in, and it seems the Yuuzhan Vong have invaded a good portion of the galaxy.
The yellow star is where we are. The grey dots are planets/systems that are still in Republic control - well presumably, some of them may be more independent as I'm not certain planets like Corellia or the Hapes Consortium ever seem to really fall into line, not important here. What is important is the yellow planets/systems. That's the enemy.
Of course if you elect a Bothan, I don't know what you even expect.
This is why the Empire's strategy of stronger military was a good one.