The PANDA of Pencil Sharpeners 2 is a gargantuan, efficient nation, ruled by Panda Protector with an even hand, and remarkable for its compulsory military service, unlimited-speed roads, and absence of drug laws. The hard-nosed, hard-working, humorless population of 10.669 billion Pencil Sharpeners 2ians have some civil rights, but not too many, enjoy the freedom to spend their money however they like, to a point, and take part in free and open elections, although not too often.

The medium-sized, corrupt 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 99.9%.

The frighteningly efficient Pencil Sharpeners 2ian economy, worth a remarkable 8,565 trillion Pencil shavings a year, is broadly diversified and mostly comprised of black market activity, especially in Information Technology, Arms Manufacturing, Retail, and Uranium Mining. Average income is a breathtaking 802,809 Pencil shavings, but there is an enormous disparity between incomes, with the richest 10% of citizens earning 4,719,502 per year while the poor average 63,638, a ratio of 74.2 to 1.

The secret ingredient is love (and MSG), students are wary of colorfully decorated new teachers with names like Professor Pipsqueak, a milk bath costs more than bathing in money, and you can say what you like about the genocidal murderers that rule Pencil Sharpeners 2 but at least the trains run on time. Crime is totally unknown. Pencil Sharpeners 2's national animal is the Pencil, which is also the nation's favorite main course, and its national religion is Pandism.

Pencil Sharpeners 2 is ranked 37,794^th in the world and 1,363^rd in the South Pacific for Most Pro-Market, scoring 66.44 on the Rand Index.