In reality, Gnomes, the Underworld Halflings are small in number (and stature) but a magically and economically powerful race.
Gnomes have a strong affinity to magical spells involving transportation or teleportation. They have also subjugated the Goliath race, using them as muscle and bodyguards. Gnome society is tightly organised along family lines. Gnomes without Goliath companions are usually outcasts, as are any gnome druids.
ALLIES: Gnomes have quietly built alliances with the Iron Empire on trading grounds.
ENEMIES: An ongoing arcane cold war with the Pillaging Wizards, on unfriendly terms with most Dwarves.