Join the new world

Although not a spectacular move this new project brings a little bit of attention. It's basically the chance to observe the process of building a community of people from the ground. In itself the process should be an excellent opportunity to watch where charisma, leadership skills and networking abilities would finally decide its faith.

So, let's begin with the minuses:

I think it lacks a selling proposition
Basically you people address smaller, peaceful nations. It's an excellent idea as you may find a niche here but in the end it may eventually prove conceptually wrong. Why: because it's a game and by definition game means quest for thrill and entertainment. eRep's mechanics unfortunately aren't flexible enough in providing alternative means of ingame fun. The thing you oppose most is the thing driving people into the game.

A WOW factor - your meet'n'greet process ain't necessarily the olympics opening ceremony. A contract is generally the last thing to do, first things you have to achieve is shine, look cool, act smart, be fun, challenge people. Otherwise the idea of territorial independence combined with the work/train/work/train cycle wouldn't necessarily be appealing. It would be RL in all its glory.
It's all about the show dudes. Elvis still marries people, Orient Express still brings tourists.

Factual or antagonic RL relationships
Some of your intended audience would find it hard to join hands and release white pigeons together. Why? Because unfortunately RL issues are sometimes being carried on here. It's hard to see Colombia and Venezuela together for instance, Israel and Iran, India and Pakistan, a.s.o.

A target market
Some small countries are already (more or less formally) aligned. Slovenia, Germany, Bulgaria, India at some point, etc. The ones with high-res regions would find it a risky move. The ones without such regions don't necessarily feel threatened as in themselves aren't worth the effort to conquer for either EDEN or PHOENIX. Also proven, a static country gains no spectacular amount of new citizens.

A rather unpredictable long-term forecast
This project looks more like the fruit of a few well-intended leaders. Thing is in two months time these leaders would step down and the newsters -without strong bonds linking them- may have other motivation and ideas. Basically lack of a common purpose would alienate members. EDEN without PHOENIX has no reason to exist for that matter.

On the other hand, you have some strong assets:

Low amount of people = quality interpersonal relationships
Smaller the community means better dialogue. Which in turn leads to more people getting involved, thus higher changes of identifying and promoting good leaders.

Low bugdet means alternative ways of solving problems. I'd not be surprised to find you as mediators, sports commenters, gun smugglers, fashion contest organizers. And above all the cool bunch of people making fun of everyone else around.

Pure image
I can only imagine what could come out: Mahatma Gandhi brigades, common avatar day, bitching at the side of the road at all the Hail/Fail nonsense comments, common presidents for several countries, whatever. Just put your mind to it.

All my best and go skyhigh.