The Incorporated States of Paktofonika is a tiny, socially progressive nation, renowned for its punitive income tax rates, devotion to social welfare, and stringent health and safety legislation. The democratic population of 14 million Paktofonikans are fiercely patriotic and enjoy great social equality; they tend to view other, more capitalist countries as somewhat immoral and corrupt.

The large, socially-minded government juggles the competing demands of Welfare, Education, and Healthcare. The average income tax rate is 53.8%, and even higher for the wealthy.

The fragile Paktofonikan economy, worth 335 billion Nowinies a year, is driven entirely by a combination of government and state-owned industry, with private enterprise illegal. The industrial sector is led by the Cheese Exports industry, with major contributions from Book Publishing, Uranium Mining, and Pizza Delivery. Average income is 23,980 Nowinies, and distributed extremely evenly, with practically no difference between the richest and poorest citizens.

Crime is totally unknown, thanks to a capable police force and progressive social policies in education and welfare. Paktofonika's national animal is the Mechaniczna pomarańcza, which frolics freely in the nation's many lush forests.

Paktofonika is ranked 323,143^rd in the world and 1^st in Leonia for Largest Black Market, with 2.00 billion Standard Monetary Units.