text: Administration Since 1989, Palikir has been the federal capital of the Federated States of Micronesia (FSM), which attained independence from, and remains since in free association with, the United States in May 1979. FSM has a constitutional government headed by a president.
  Economy
  The economy of the capital city is reflected in the economic resources of the FSM Islands (600 islands, atolls and islets (including Pohnpei Island)) as a whole. The economy of the island consists basically of subsistence farming and fishing (fish processing and aquaculture). Tropical agricultural and plantation products like copra, breadfruit, taro, betel nuts, sweet potatoes, cassava, tropical fruits and vegetables, trochus shells, cacao and rice are produced. Livestock, such as pigs and poultry, are raised. Products such as fish, bananas, black pepper, and garments are mainly exported to Japan. Food, manufactured goods, machinery and equipment and beverages are imported.
  The country is independent, but in fact depends on financial support stemming from its Compact of Free Association with the US.  the inflation rate was 2% and the cost of living (for imported goods) in Palikir is reportedly very high in comparison with other places in the world.
  Education
  Pohnpei State Department of Education operates public schools:
  Palikir Elementary School
  Bailey Olter High School (former Pohnpei Island Central School or PICS) in Kolonia serves students from Sokehs.
  Notable people
  Bailey Olter, politician
  Emelihter Kihleng, poet
  Transportation
  Pohnpei International Airport is close to Palikir.