The Minster of Regional Affairs of Pencil Sharpeners 2 is a colossal, orderly nation, ruled by Supercomputer 00356 with an iron fist, and notable for its museums and concert halls, barren, inhospitable landscape, and keen interest in outer space. The hard-nosed, hard-working, cynical, humorless population of 6.888 billion Pencil Sharpeners 2ians are ruled by a mostly-benevolent dictator, who grants the populace the freedom to live their own lives but watches carefully for anyone to slip up.

The medium-sized, corrupt, well-organized government juggles the competing demands of Defense, Industry, and Education. It meets to discuss matters of state in the capital city of Pandapolis. The average income tax rate is 99.1%.

The frighteningly efficient Pencil Sharpeners 2ian economy, worth a remarkable 4,757 trillion Pencil shavings a year, is broadly diversified and mostly comprised of black market activity, especially in Information Technology, Arms Manufacturing, Uranium Mining, and Retail. Average income is a breathtaking 690,643 Pencil shavings, but there is a significant disparity between incomes, with the richest 10% of citizens earning 2,581,229 per year while the poor average 129,423, a ratio of 19.9 to 1.

Pandapolis's iconic yellow taxis are nowhere to be seen, a wide-ranging purge of leading officials and family members is being carried out by Supercomputer 00356, Ollie the Oiled Seal welcomes throngs of tourists to the newly opened Oil Oasis Water Park, and chalkboards are replaced with billboards in the classroom. Crime is totally unknown. Pencil Sharpeners 2's national animal is the Pencil, which is also the nation's favorite main course.

Pencil Sharpeners 2 is ranked 969^th in the world and 14^th in the South Pacific for Largest Insurance Industry, scoring 11,798.5 on the Risk Expulsion Effectiveness Rating.