Oddworld canon isn't particularly well thought out, Lorne mostly just makes it up as he goes along. The Glukkons seem to run a sort of capitalist oligarchy with Margaret as a matriarch. They employ the Sligs as lumpenproletariat to enforce their enslavement of Mudokons.
In the wild the Mudokons are Luddite noble-savages. Lorne likes to romanticise shit like that because he's a hippy.
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