Tracona is a fictional nation where Jagged Alliance 2: Unfinished Buisness takes place.
Recon Intelligence Services has a report on Tracona which is provided to the player at the start of the game, and is reproduced in parts here.
Tracona is an extremely small third world country to the north of Arulco. It's terrain is extremely mountainous and varies greatly based on altitude.
There are seven towns in Tracona, but out of them only one, Varrez is visited in the course of the game.
Sardena is its capital as well as the largest town, and also contains the only airport, hospital, and university in the country.
The only other notable facility is the long range missile base constructed outside Varrez.
"Over 50% of the country's econcomy is derived from mining. Four mines are currently in production in Tracona. A fifth mine, in Varrez, was depleted and closed recently. The ore extracted is mostly silver, nickel, and some gold.
After mining, the country's second industry is forestry. Timber represents over 25% of Tracona's exports.
Fishing and farming account for the remainder. There are some light manufacturing and assembly plants in Sardena."
-RIS Report, Economy
Tracona gained independence from the nation of Cali in 1910. Since its formation Tracona has been a military dictatorship. It's currently ruled by General Sevaratanis. The second in command, and most likely successor, is Deputy Commander Morris.