@oristarA,
Not isolated but insulated. Imagine a room in a house in a cold climate. One that is isolated, ie. has no walls that touch the outside is isolated [from the cold], no direct contact with outside temperatures so there is no appreciable heat loss.
An insulated system still has connections, be it direct contact with the cold [or, in your case, contact with citizens] but with the insulation, it can moderate those connections, control those connections to some degree.