I have been thinking recently about this question and interested to hear some thoughts and opinions. It's not so much a technical worldbuilding question as a question about the 'right' way to worldbuild.
I'm in the planning stages of a fantasy story based on real history, from a country/region in Asia, late 1800s and into the 20th century. It's a history that I'm really interested in and that I would love to share through fiction as it is relatively unknown. I have also lived and worked for a few years in the country in question, so I feel like I could paint an accurate picture and avoid any harmful stereotypes. But I am not from that place or culture.
What I am wondering is how close the fantasy should be to real history; should it be close so that the parallel is quite obvious, even with place names inspired by the real locations (much like the Poppy War book), or should it be only inspired by the key events but otherwise a completely fantasy creation?
I have read some articles lately that criticise work that too heavily draws from cultures that don't 'belong' to the writer; or that cherry pick or exoticise certain aspects. (A specific example would be The Tiger's Daughter by Rivera). That's why I'm wondering how closely my fantasy world should reflect the real history it is based on, given that it is not my history or my culture. But it is really rich, interesting and fairly uncommon, and I would much rather write this style than the more common medieval style fantasy.
It's also a concern that I have magic systems in my ideas, which are somewhat built on existing religions/practices, and I don't know if this is OK. One example is a group who use tattoos believing they will grant protection (a real belief and practice), and while it doesn't work for most of them, one character finds that it empowers and protects him 'magically' (due to a particular mineral that he mixed into the ink). I could see how people could call this out for exoticism if the fantasy world is a close parallel to reality; less so if the fantasy world is more distinct fantasy.
I could just create a more fantasy world that uses unique cultures, religions, etc. to avoid any potentially unsavoury comparisons, but it would mean moving away from the original histories which I'm inspired to write about and share.
I'm sure some people will say don't worry about it, and others will say it's potentially offensive. I'm just trying to strike a balance. On the one hand, I have seen some reviewers saying that naming fantasy places based on real life locations is lazy and 'badly concealed'; on the other hand, if you want people to know that you have been inspired by real history and want to lead readers to learn more about it themselves, isn't it a good idea?