The Cephalopodic Republic of Octopus Islands is a colossal, efficient nation, ruled by Kraken with an even hand, and notable for its rum-swilling pirates, compulsory vegetarianism, and smutty television. The compassionate, devout population of 6.847 billion Cephalopods 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.

It is difficult to tell where the omnipresent government stops and the rest of society begins, but it juggles the competing demands of Environment, Education, and Administration. It meets to discuss matters of state in the capital city of Octopolis. The average income tax rate is 98.1%.

The frighteningly efficient Cephalopodic economy, worth 839 trillion tentacles a year, is driven almost entirely by government activity. The industrial sector, which is extremely specialized, is mostly made up of the Information Technology industry, with major contributions from Book Publishing. Average income is an impressive 122,559 tentacles, and evenly distributed, with the richest citizens earning only 2.1 times as much as the poorest.

The government has legalised small-scale capitalism, rumor has it that Kraken has won three lotteries in a row, owning a really cute pet is grounds for immediate investigation, and more than one company makes the board game Monopoly. Crime is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. Octopus Islands's national animal is the mimic octopus, which frolics freely in the nation's sparkling oceans.

Octopus Islands is ranked 219,051^st in the world and 370^th in Forest for Largest Soda Pop Sector, scoring -15.2 on the Addison-Fukk Productivity Rating.