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Guide to Palau

Introduction

Background: 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.

Geography

Location: Oceania, group of islands in the North Pacific Ocean, southeast of the Philippines
Geographic coordinates: 7 30 N, 134 30 E
Map references: Oceania
Area: total
Area - comparative: slightly more than 2.5 times the size of Washington, DC
Land boundaries: 0 km
Coastline: 1,519 km
Maritime claims: territorial sea
Climate: tropical; hot and humid; wet season May to November
Terrain: varying geologically from the high, mountainous main island of Babelthuap to low, coral islands usually fringed by large barrier reefs
Elevation extremes: lowest point
Natural resources: forests, minerals (especially gold), marine products, deep-seabed minerals
Land use: arable land
Irrigated land: NA
Natural hazards: typhoons (June to December)
Environment - current issues: inadequate facilities for disposal of solid waste; threats to the marine ecosystem from sand and coral dredging, illegal fishing practices, and overfishing
Environment - international agreements: party to
Geography - note: 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

People

Population: 20,303 (July 2005 est.)
Age structure: 0-14 years
Median age: total
Population growth rate: 1.39% (2005 est.)
Birth rate: 18.37 births/1,000 population (2005 est.)
Death rate: 6.85 deaths/1,000 population (2005 est.)
Net migration rate: 2.36 migrant(s)/1,000 population (2005 est.)
Sex ratio: at birth
Infant mortality rate: total
Life expectancy at birth: total population
Total fertility rate: 2.46 children born/woman (2005 est.)
HIV/AIDS - adult prevalence rate: NA
HIV/AIDS - people living with HIV/AIDS: NA
HIV/AIDS - deaths: NA
Nationality: noun
Ethnic groups: Palauan (Micronesian with Malayan and Melanesian admixtures) 69.9%, Carolinian 1.4%, other Micronesian 1.1%, Filipino 15.3%, Chinese 4.9%, other Asian 2.4%, white 1.9%, other or unspecified 3.2% (2000 census)
Religions: 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 religion 3.1%, unspecified or none 16.4% (2000 census)
Languages: 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)
Literacy: definition

Government

Country name: conventional long form
Government type: constitutional government in free association with the US; the Compact of Free Association entered into force 1 October 1994
Capital: Koror; note - a new capital is being built about 20 km northeast of Koror
Administrative divisions: 16 states; Aimeliik, Airai, Angaur, Hatohobei, Kayangel, Koror, Melekeok, Ngaraard, Ngarchelong, Ngardmau, Ngatpang, Ngchesar, Ngeremlengui, Ngiwal, Peleliu, Sonsorol
Independence: 1 October 1994 (from the US-administered UN Trusteeship)
National holiday: Constitution Day, 9 July (1979)
Constitution: 1 January 1981
Legal system: based on Trust Territory laws, acts of the legislature, municipal, common, and customary laws
Suffrage: 18 years of age; universal
Executive branch: chief of state
Legislative branch: bicameral Parliament 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) elections
Judicial branch: Supreme Court; National Court; Court of Common Pleas
Political parties and leaders: none
Political pressure groups and leaders: NA
International organization participation: ACP, AsDB, FAO, G-77, IBRD, ICAO, ICRM, IDA, IFC, IFRCS, IMF, IOC, MIGA, OPCW, PIF, UN, UNCTAD, UNESCO, WHO
Diplomatic representation in the US: chief of mission
Diplomatic representation from the US: chief of mission
Flag description: light blue with a large yellow disk (representing the moon) shifted slightly to the hoist side

Economy

Economy - overview: 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. Business and tourist arrivals numbered 63,000 in 2003. The population enjoys a per capita income twice 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.
GDP (purchasing power parity): $174 million note
GDP - real growth rate: 1% (2001 est.)
GDP - per capita: purchasing power parity - $9,000 (2001 est.)
GDP - composition by sector: agriculture
Labor force: 9,845 (2000)
Labor force - by occupation: agriculture 20%, industry NA, services NA (1990)
Unemployment rate: 2.3% (2000 est.)
Population below poverty line: NA
Household income or consumption by percentage share: lowest 10%
Inflation rate (consumer prices): 3.4% (2000 est.)
Budget: revenues
Agriculture - products: coconuts, copra, cassava (tapioca), sweet potatoes
Industries: tourism, craft items (from shell, wood, pearls), construction, garment making
Industrial production growth rate: NA
Electricity - production by source: NA
Exports: $18 million f.o.b. (2001 est.)
Exports - commodities: shellfish, tuna, copra, garments
Exports - partners: US, Japan, Singapore (2000)
Imports: $99 million f.o.b. (2001 est.)
Imports - commodities: machinery and equipment, fuels, metals; foodstuffs
Imports - partners: US, Guam, Japan, Singapore, South Korea (2000)
Debt - external: $0 (FY99/00)
Economic aid - recipient: $155.8 million ; note - the Compact of Free Association with the US, entered into after the end of the UN trusteeship on 1 October 1994, provides Palau with up to $700 million in US aid over 15 years in return for furnishing military facilities
Currency (code): US dollar (USD)
Currency code: USD
Exchange rates: the US dollar is used
Fiscal year: 1 October - 30 September

Communications

Telephones - main lines in use: 6,700 (2002)
Telephones - mobile cellular: 1,000 (2002)
Telephone system: general assessment
Radio broadcast stations: AM 1, FM 4, shortwave 1 (2002)
Radios: 12,000 (1997)
Television broadcast stations: 1 (cable) (2005)
Televisions: 11,000 (1997)
Internet country code: .pw
Internet Service Providers (ISPs): 1 (2002)

Transportation

Highways: total
Ports and harbors: Koror
Airports: 3 (2004 est.)
Airports - with paved runways: total
Airports - with unpaved runways: total

Military

Military branches: no regular military forces; Police Force
Military expenditures - dollar figure: NA
Military expenditures - percent of GDP: NA
Military - note: 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

Transnational Issues

Disputes - international: border delineation disputes being negotiated with Philippines, Indonesia
Last updated: 20 October, 2005