The Republic of Capybara Navy 2 is a small, genial nation, notable for its compulsory military service and suspicion of poets. The compassionate, cynical, devout population of 40 million Capybara Navy 2ians are ruled with an iron fist by the dictatorship government, which ensures that no-one outside the party gets too rich. In their personal lives, however, citizens are relatively unoppressed; it remains to be seen whether this is because the government genuinely cares about its people, or if it hasn't gotten around to stamping out civil rights yet.

The medium-sized, well-organized government juggles the competing demands of Spirituality, Welfare, and Education. The average income tax rate is 32.9%, but much higher for the wealthy.

The sizeable but underdeveloped Capybara Navy 2ian economy, worth 1.52 trillion Aaaas a year, is fairly diversified and led by the Basket Weaving industry, with major contributions from Beef-Based Agriculture, Soda Sales, and Uranium Mining. State-owned companies are common. Average income is 37,894 Aaaas, and distributed extremely evenly, with little difference between the richest and poorest citizens.

The government awards prizes to television shows featuring stereotype-breaking minority roles, genetic researchers have been expelled, Harry Potter books are banned, and only the brainiest citizens become academics. Crime, especially youth-related, is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Capybara Navy 2's national animal is the Aaaa, which can occasionally be seen sifting through garbage in the nation's cities.

Capybara Navy 2 is ranked 238,756^th in the world and 36^th in Capybara HQ for Least Corrupt Governments, with 91.71 percentage of bribes refused.