A cloud level design question

[JR_G]

I have been working to design an rpg and walked right into the deep end. I haven't even gotten to the mechanics level. All I have is a list of races and a couple of organizations.

I am trying to design this world organically. I want the actions of the peoples of the world to be affected by the environment(cultural, political, natural). I want the political interactions to be realistic based on the cultures of the various groups. I plan to build a full history. I know it's a huge task. I'm willing to take it on(I have help). This is something I am very serious about. I have a myriad of questions but they all depend on one thing first:

How do I build an organic, realistic world  when everything requires 3 other things to be brought up simultaneously(which comes first the chicken or the egg)? Are there things I really do need first or are there any tips to get a handle on the big picture? I've looked at a few websites but the information tends to be somewhat vague or geared towards other styles(online gaming or novel writing).

[Ar Kayon]

My work on Nevercast

[JR_G]

Thanks, that is very helpful. I'll work it into my current outline.

Just to provide some more detail on the setting, the idea is all the races are anthropomorphic animals and they are organized into loose factions, with each performing some basic role in society. I actually am trying to give the setting a strong element of intrigue and spy action. I love spy/heist movies and one thing I feel that ends up missing from a lot of games and especially turn based games is a sense of "there's something right behind me and I need to get moving because it could find me at any minute(think Bourne Identity)." So it really is important that there's a lot of history and a lot of groups and groups within groups in order to have plenty of people to make angry the first time you walk into the wrong tavern in the wrong part of town(for example).

[dindenver]

JR,
  This task can be made a lot easier if you bare two things in mind:
1) Find the theme of your game and distinguish the various cultures, nations, etc. by how they approach that theme. The theme doesn't have to be specific or intense. It can be deep like what does it take to have peace on this world or light like which nation has the most powerful artifact.
2) Focus on the parts you love and feel free to hand wave the parts that are not as fun for you. The reality is, there will be parts you don't get exactly right. And the real world is wilder than the tolerances of any fiction (see http://matadortrips.com/photo-essay-the-most-alien-landscapes-on-earth ).

  Either way, good luck with your design.