I'm sorry for not world building like I should have off of the jump, it was a lot to take in with our protagonists. I find things like that will come with time, but to break down the critical things. The country where this is happening is Valorous, it is a peninsula country that is kind of like a tear drop shape. It has minimal connecting area to the rest of the continent. The neighboring countries are vastly different in structure, and belief systems which you will get to see. The two neighboring countries also are about four to five times large than Valorous and are at a constant stalemate of war with each other, and the pot boiling over happens every few generations.
Valorous is a sovereign nation for the most part and is left out of most interactions of the other nations. Valorous has three major governing parties, the first being the Royal Court, the second the Congress of Laws, and the Council of the Fallen Moon.
First the Royal Court, nobles and royal lineages run the laws over mercantile goods, trade and laws associated with day-to-day life; since the high chance of corruption exists all laws passed by this governing party are reviewed by the latter, The Congress.
Second the Congress, they oversee the judicial punishment of criminals of day-to-day life, laws of the state and crime, and all regulations of the military. No one in this branch of government is allowed to be elemental bound. There is also a chance for corruption in this, so all laws passed by this governing body are checked and balanced by the Council of the Fallen Moon.
Finally, The Council of the Fallen Moon, the elements decide the leader of the Council, I know not the best option always, but the elements can see into your soul, sense corruption and would never allow it. The Viceroy is the figurehead of the governing body and is typically the strongest of all bound. There is a subsector of the Council, it wouldn't be much of a council if one person could make of all of the calls, the Board of Writs, these are the rest of the Council, eight members all chosen by their respective elements, two of fire, two of earth, two of air, and two of water. This body is responsible for three things, punishment of crimes committed by elemental bound, and laws that abide the elemental bound. Ultimately the laws passed by the Council are reviewed and approved by the Royal Court. The third thing is operations involving the bound, while a military resource if needed the bound are used more for covert operations, and defense of the country.
The country exists in a free-market trade and even though there is a monetary system in effect, open trade between citizens of the nation can handle all other deals at the lowest possible level. That being said, Healthcare needs are handled solely by the government, and costs associated come from taxes paid equally by the people of Valorous. Everyone pays an equal share according to their station.
This doesn't lead to a corruption free environment, it's small ability to control the actions of individuals leads to the human condition of greed. However, the police are simply put a military unit and only used for enforcing laws of the people and is enforced by the Congress. Not many people fight the word of the Congress because they are typically considered above all fair.
Now enough of my blabbering about the world our brave four live in, I hope you enjoy the story, and all of your questions are answered with time.
And once again. Thank you.