Kolonia
Kolonia anchors FSM's commercial activity: tuna licenses and US Compact funding sustain the economy while 607 islands depend largely on subsistence across 2.6 million km² of ocean.
Kolonia serves as the commercial center of Pohnpei state, the most populated of the Federated States of Micronesia's four states. While Palikir became the national capital in 1989, Kolonia retains its role as the primary commercial hub, hosting the port facilities that connect the island chain to international trade. The FSM economy depends heavily on US Compact of Free Association funding, which provides substantial budget support.
Subsistence agriculture and fishing remain important for most of the population across Micronesia's 607 islands spread over 2.6 million square kilometers of Pacific Ocean. Tuna fishing licenses provide significant government revenue, with the FSM's waters holding some of the world's richest tuna stocks. Tourism remains underdeveloped compared to other Pacific destinations due to remoteness and limited flight connectivity.
Kolonia anchors whatever formal economic activity exists in Pohnpei, including government offices, retail, and services. The compact relationship with the United States provides economic stability but creates dependency that FSM governments have struggled to diversify away from since independence in 1986.