What is suggested by the existence of of "Colonies" where "Unknown" live?

The existence of the colonies in The Handmaid's Tale
implies several things. First it implies that parts of the world have been destroyed and
rendered uninhabitable or toxic. It is implied that this was through war and upheaval.
The other concept implied here is that there is a horrible, dangerous place that those
who refuse to follow the new government will be sent. The government is strict and
ruthless. Citizens trying to go against them or use their voice and speak up will be
punished. The word colonies usually has a positive connotation; however, in Atwood's
world, colonies are not new worlds to explore, but old places where people are sent to
labor, be punished and die.