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 independent status 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 their independence.

Area
Total: 458 km²
Land: 458 km²
Comparative: slightly more than 2.5 times the size of Washington, DC

Land boundaries: 0 km

Coastline: 1,519 km

Maritime claims
Continental shelf: 200-m depth or to depth of exploitation
Exclusive fishing zone: 200 nm
Territorial sea: 3 nm

Climate: Wet season May to November; hot and humid

Terrain: About 200 islands varying geologically from the high, mountainous main island of Babelthuap to low, coral islands usually fringed by large barrier reefs

Elevation
Extremes lowest point: Pacific Ocean 0 m
Extremes highest point: Mount Ngerchelchauus 242 m

Natural resources:

Land use
Arable land: NA
Permanent crops: NA
Permanent pastures: NA
Forests and woodland: NA
Other: NA

Irrigated land: NA

Population:
Growth rate:

Nationality
Noun: Palauan(s)
Adjective: Palauan

Ethnic groups: Palauans are a composite of Polynesian, Malayan, and Melanesian races

Languages: English (official in all of Palau's 16 states), Sonsorolese (official in the state of Sonsoral), Angaur and Japanese (in the state of Anguar), Tobi (in the state of Tobi), Palauan (in the other 13 states)

Religions: Christian (Catholics, Seventh-Day Adventists, Jehovah's Witnesses, the Assembly of God, the Liebenzell Mission, and Latter-Day Saints), Modekngei religion (one-third of the population observes this religion which is indigenous to Palau)

Age structure
0-14 years: NA
15-64 years: NA
65 years and over: NA

Population growth rate:

Birth rate:

Death rate:

Net migration rate:

Environment
Current issues: inadequate facilities for disposal of solid waste; threats to the marine ecosystem from sand and coral dredging and illegal fishing practices that involve the use of dynamite
Current issues Natural hazards: typhoons (June to December)
International agreements: NA
International agreements note: Includes World War II battleground of Beliliou (Peleliu) and world-famous rock islands; archipelago of six island groups totaling over 200 islands in the Caroline chain

Infant mortality rate:

Life expectancy at birth
Total population: 71.01 years
Male: 69.14 years
Female: 73.02 years (1996 est.)

Total fertility rate:

Literacy
Definition: age 15 and over that can read and write (1980)
Total population: 92%
Male: 93%
Female: 90%

Country name
Conventional long form: Republic of Palau
Conventional short form: Palau
Former: Trust Territory of the Pacific Islands

Government type: Self-governing territory in free association with the U.S.; the Compact of Free Association entered into force 1 October 1994

Capital: Koror
Note: A new capital is being built about 20 km northeast in eastern Babelthuap

Administrative divisions: 16 states:Aimeliik, Airai, Angaur, Kayangel, Koror, Melekeok, Ngaraard, Ngardmau, Ngaremlengui, Ngatpang, Ngchesar, Ngerchelong, Ngiwal, Peleliu, Sonsorol, Tobi

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 and head of government:President Kuniwo NAKAMURA (since 1 January 1993), Vice-President Tommy E. REMENGESAU Jr. (since 1 January 1993; election last held 4 November 1992 (next to be held NA November 1996; results_Kuniwo NAKAMURA 50.7%, Johnson TORIBIONG 49.3%

Legislative branch: Bicameral Parliament (Olbiil Era Kelulau or OEK) Senate:Elections last held 4 November 1992 (next to be held NA November 1996; results_percent of vote by party NA; seats_(14 total) number of seats by party NA House of Delegates:Elections last held 4 November 1992 (next to be held NA November 1996; results_percent of vote by party NA; seats_(16 total) number of seats by party NA

Judicial branch: Supreme Court, National Court, Court of Common Pleas Political parties and leaders:Palau Nationalist Party, Polycarp BASILIUS

International organization participation: ESCAP (associate), SPC, SPF, UN, WHO

Flag description: Light blue with a large yellow disk (representing the moon) shifted slightly to the hoist side

Economy overview: The economy consists primarily of subsistence agriculture and fishing. The government is the major employer of the work force, relying heavily on financial assistance from the US. The population, in effect, enjoys a per capita income of $5,000, twice that of the Philippines and much of Micronesia. Long-run prospects for the tourist sector have been greatly bolstered by the expansion of air travel in the Pacific and the rapidly rising prosperity of leading East Asian countries. Reducing budgeted operating expenditures_which have increased 56% from 1989 to 1993_will be the biggest challenge for the government over the next several years.

Real gdp growth rate: NA

Real gdp per capita: purchasing power parity_ $5,000 (1994 est.)

Agriculture products: Subsistence-level production of coconut, copra, cassava, sweet potatoes

Industries:

Industrial production growth rate: Growth rate NA

Labor force: NA
By occupation: NA

Unemployment rate: 20% (1986)

Budget
Revenues: $17 million (1995 est.), $6 million (1986 est.)
Expenditures: $57 million, including capital expenditures of $NA (1995 est.)

Fiscal year: 1 October_30 September

Exports: total value. $600,000 (f.o.b., 1989)
Commodities:
Partners:

Imports: total value:$24.6 million (c.i.f., 1989)
Commodities: NA
Partners: U.S.

Debt external: About $100 million (1989)

Exchange rates: U.S. currency is used

Electricity
Capacity: 16,000 kW
Production: 22 million kWh
Consumption per capita: 1,540 kWh (1990)

Telephone system: 1,500 telephones (1988 est.)
Domestic: NA
International: 1 INTELSAT (Pacific Ocean) earth station

Airports: 3
15-24 to 2437 m:

Merchant marine: None