Palikir, Micronesia

Capital City

With a population of just 6,227, Palikir is a tiny capital city - and it shows. The federal administration may be located here, but this is still very much a village, with all the limitations that entails. Bureaucracy is a persistent headache, and the climate is punishingly wet, with over 204 inches of rain annually, making Palikir the world's wettest capital.

While the island's natural beauty is undeniable, the reality is that Palikir offers little in the way of modern amenities or economic opportunity. With a "high degree of hardship" and a 30% cost-of-living premium, this is a place best suited for civil servants and the most adventurous of expats, not those seeking a comfortable, cosmopolitan lifestyle.