Australia is made up of several states and territories. Politically, it is a constitutional monarchy and parliamentary democracy. Physically, it is the smallest continent and includes the world's largest coral reef, the Great Barrier Reef, off its northeast coast. It also contains the red monolith of Ayers Rock (Uluru) in the Northern Territory and the Great Victoria Desert that stretches across South Australia and Western Australia. Most Australians live along the southeastern coastal region which has a milder climate than the hot, dry interior.