In the first Quarterly Essay for 2007, Peter Hartcher discusses the fantasies and realities at the heart of our politics. When our political leaders look at us, what do they see? What are the hopes, fears and dreams of the Australian electorate, and how might they be turned to election winning advantage? What, most fundamentally, do we want in a prime minister? In this scintillating and original essay, Peter Hartcher investigates today's "bipolar nation", where Australians are more economically secure, yet existentially as anxious as ever. He explains how the Lucky Country and the Frightened Country will be the two grand themes of the election year, and discusses how John Howard will set out to craft an election winning strategy on that basis. He revisits Donald Horne's Lucky Country, looks at the legacy of Paul Keating, and analyses Kevin Rudd's many layered effort to out-manoeuvre the Prime Minister.