After three decades as part of the UN Trust Territory of the Pacific under US administration, this westernmost cluster of the Caroline Islands opted for independence in 1978 rather than join the Federated States of Micronesia. A Compact of Free Association with the US was approved in 1986 but not ratified until 1993. It entered into force the following year when the islands gained independence.

Oceania, group of islands in the North Pacific Ocean, southeast of the Philippines

slightly more than 2.5 times the size of Washington, DC

tropical; hot and humid; wet season May to November

varying geologically from the high, mountainous main island of Babelthuap to low, coral islands usually fringed by large barrier reefs

forests, minerals (especially gold), marine products, deep-seabed minerals

typhoons (June to December)

inadequate facilities for disposal of solid waste; threats to the marine ecosystem from sand and coral dredging, illegal fishing practices, and overfishing

westernmost archipelago in the Caroline chain, consists of six island groups totaling more than 300 islands; includes World War II battleground of Beliliou (Peleliu) and world-famous rock islands

20,796 (July 2010 est.)

11.2 births/1,000 population (2010 est.)

7.89 deaths/1,000 population (July 2010 est.)

0.96 migrant(s)/1,000 population (2010 est.)

1.73 children born/woman (2010 est.)

Palauan (Micronesian with Malayan and Melanesian admixtures) 69.9%, Filipino 15.3%, Chinese 4.9%, other Asian 2.4%, white 1.9%, Carolinian 1.4%, other Micronesian 1.1%, other or unspecified 3.2% (2000 census)

Roman Catholic 41.6%, Protestant 23.3%, Modekngei 8.8% (indigenous to Palau), Seventh-Day Adventist 5.3%, Jehovah's Witness 0.9%, Latter-Day Saints 0.6%, other 3.1%, unspecified or none 16.4% (2000 census)

Palauan 64.7% official in all islands except Sonsoral (Sonsoralese and English are official), Tobi (Tobi and English are official), and Angaur (Angaur, Japanese, and English are official), Filipino 13.5%, English 9.4%, Chinese 5.7%, Carolinian 1.5%, Japanese 1.5%, other Asian 2.3%, other languages 1.5% (2000 census)

constitutional government in free association with the US; the Compact of Free Association entered into force on 1 October 1994

16 states; Aimeliik, Airai, Angaur, Hatohobei, Kayangel, Koror, Melekeok, Ngaraard, Ngarchelong, Ngardmau, Ngatpang, Ngchesar, Ngeremlengui, Ngiwal, Peleliu, Sonsorol

1 October 1994 (from the US-administered UN trusteeship)

Constitution Day, 9 July (1979)

based on Trust Territory laws, acts of the legislature, municipal, common, and customary laws; has not accepted compulsory ICJ jurisdiction

18 years of age; universal

bicameral National Congress or Olbiil Era Kelulau (OEK) consists of the Senate (9 seats; members elected by popular vote on a population basis to serve four-year terms) and the House of Delegates (16 seats; members elected by popular vote to serve four-year terms)

Supreme Court; Court of Common Pleas; Land Court

ACP, ADB, AOSIS, FAO, IAEA, IBRD, ICAO, ICRM, IDA, IFC, IFRCS, IMF, IOC, IPU, MIGA, OPCW, PIF, Sparteca, SPC, UN, UNCTAD, UNESCO, WHO

light blue with a large yellow disk shifted slightly to the hoist side; the blue color represents the ocean, the disk represents the moon; Palauans consider the full moon to be the optimum time for human activity; it is also considered a symbol of peace, love, and tranquility

The economy consists primarily of tourism, subsistence agriculture, and fishing. The government is the major employer of the work force relying heavily on financial assistance from the US. The Compact of Free Association with the US, entered into after the end of the UN trusteeship on 1 October 1994, provided Palau with up to $700 million in US aid for the following 15 years in return for furnishing military facilities. Business and tourist arrivals numbered 85,000 in 2007. The population enjoys a per capita income roughly 50% higher than that of the Philippines and much of Micronesia. Long-run prospects for the key tourist sector have been greatly bolstered by the expansion of air travel in the Pacific, the rising prosperity of leading East Asian countries, and the willingness of foreigners to finance infrastructure development.

$164 million (2008 est.)

$124.5 million (2004 est.)

GDP estimate includes US subsidy

coconuts, copra, cassava (tapioca), sweet potatoes; fish

tourism, craft items (from shell, wood, pearls), construction, garment making

$15.09 million (FY03/04)

$5.882 million (2004 est.)

shellfish, tuna, copra, garments

$107.3 million (2004 est.)

machinery and equipment, fuels, metals; foodstuffs

the US dollar is used

no television broadcast stations; a cable television network covers the major islands and provides access to rebroadcasts, on a delayed basis, of a number of US stations as well as access to a number of real-time satellite TV channels; about a half dozen radio stations with 1 government-owned (2009)

no regular military forces; Palau National Police (2009)

defense is the responsibility of the US; under a Compact of Free Association between Palau and the US, the US military is granted access to the islands for 50 years, but it has not stationed any military forces there (2008)

maritime delineation negotiations continue with Philippines, Indonesia