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.

Geographic coordinates: 7 30 N, 134 30 E

Map reference: Oceania

Area
Total: 458 km²
Land: 458 km²
Water: 0 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 the depth of exploitation
Exclusive fishing zone: 12 nm
Extended fishing zone: 200 nm
Territorial sea: 3 nm

Climate: wet season May to November; hot and humid

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

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

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

Irrigated land: NA km²

Natural hazards: typhoons (June to December)

Geography
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

Population: 18,467 (July 1999 est.)
Growth rate: 1.94% (1999 est.)
Below poverty line: NA%

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: 27% (male 2,595; female 2,446)
15-64 years: 68% (male 6,867; female 5,675)
65 years and over: 5% (male 416; female 468) (1999 est.)

Population growth rate: 1.94% (1999 est.)

Birth rate: 21.55 births/1000 population (1999 est.)

Death rate: 7.74 deaths/1000 population (1999 est.)

Net migration rate: 5.63 migrant(s)/1000 population (1999 est.)

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
International agreements party to: Biodiversity, Law of the Sea
International agreements signed but not ratified: none of the selected agreements

Sex ratio
At birth: 1.06 male(s)/female
Under 15 years: 1.06 male(s)/female
15-64 years: 1.21 male(s)/female
65 years and over: 0.89 male(s)/female
Total population: 1.15 male(s)/female (1999 est.)

Infant mortality rate: 18.5 deaths/1000 live births (1999 est.)

Life expectancy at birth
Total population: 67.75 years
Male: 64.69 years
Female: 70.98 years (1999 est.)

Total fertility rate: 2.66 children born/woman (1999 est.)

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

Country name
Conventional long form: Republic of Palau
Conventional short form: Palau
Local long form: Beluu er a Belau
Local short form: Belau
Former: Trust Territory of the Pacific Islands

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: 18 states; Aimeliik, Airai, Angaur, Hatobohei, Kayangel, Koror, Melekeok, Ngaraard, Ngarchelong, Ngardmau, Ngatpang, Ngchesar, Ngeremlengui, Ngiwal, Palau Island, Peleliu, Sonsoral, 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: President Kuniwo NAKAMURA (since 1 January 1993) and Vice President Tommy E. REMENGESAU Jr. (since 1 January 1993); note_the president is both the chief of state and head of government
Head of government: President Kuniwo NAKAMURA (since 1 January 1993) and Vice President Tommy E. REMENGESAU Jr. (since 1 January 1993); note_the president is both the chief of state and head of government
Cabinet: Cabinet
Elections: president and vice president elected on separate tickets by popular vote for four-year terms; election last held 11 November 1996 (next to be held NA November 2000)
Election results: Kuniwo NAKAMURA reelected president; percent of vote_Kuniwo NAKAMURA 64%, Chief Ibedul Yutuka GIBBONS 36%; Tommy E. REMENGESAU Jr. reelected vice president; percent of vote_Tommy E. REMENGESAU Jr. 69%, Kione ISECHAL 31%

Legislative branch: bicameral Parliament or Olbiil Era Kelulau (OEK) consists of the Senate (14 seats; members elected by popular vote on a population basis to serve four-year terms) and the House of Delegates (16 seats_one from each state; members elected by popular vote to serve four-year terms)
Elections: Senate_last held 11 November 1996 (next to be held NA November 2000); House of Delegates_last held 11 November 1996 (next to be held NA November 2000)
Election results: Senate_percent of vote by party_NA; seats by party_NA; House of Delegates_percent of vote by party_NA; seats by party_NA

Judicial branch: Supreme Court; National Court; Court of Common Pleas

International organization participation: ESCAP, IBRD, ICAO, ICRM, IDA, IFC, IFRCS, IMF, Sparteca, SPC, SPF, UN, UNCTAD, WHO

Diplomatic representation
In the us chief of mission: Ambassador Hersey KYOTA
In the us chancery: 1150 18th Street NW, Suite 750, Washington, DC 20,036
In the us telephone: [1] (202) 452-6,814
In the us FAX: [1] (202) 452-6,281
From the us chief of mission: Ambassador Thomas C. HUBBARD (resident in Manila); Charge d'Affaires Allen E. NUGENT
From the us embassy: address NA, Koror
From the us mailing address: P.O. Box 6,028, Republic of Palau 96,940
From the us telephone: [680] 488-2,920, 2,990
From the us FAX: [680] 488-2,911

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 enjoys a per capita income of more than 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 rising prosperity of leading East Asian countries.

Real gdp growth rate: 10% (1997 est.)

Real gdp per capita: purchasing power parity: $8,800 (1997 est.)

Gdp composition by sector of origin
Agriculture: NA%
Industry: NA%
Services: NA%

Agriculture products: coconuts, copra, cassava (tapioca), sweet potatoes

Industries: tourism, craft items (from shell, wood, pearls), some commercial fishing and agriculture

Industrial production growth rate: NA%

Labor force: NA
By occupation: NA

Unemployment rate: 7%

Population below poverty line: NA%

Budget
Revenues: $52.9 million
Expenditures: $59.9 million, including capital expenditures of $N/A (1997 est.)

Fiscal year: 1 October_30 September

Exports: $14.3 million (f.o.b., 1996)
Commodities: trochus (type of shellfish), tuna, copra, handicrafts
Partners: US, Japan

Imports: $72.4 million (f.o.b., 1996)
Commodities: NA
Partners: US

Debt external: about $100 million (1989)

Exchange rates: US currency is used

Electricity
Production: 200 million kWh (1996)
Production by source fossil fuel: 85%
Production by source hydro: 15%
Production by source nuclear: 0%
Production by source other: 0% (1996)
Consumption: 200 million kWh (1996)
Exports: 0 kWh (1996)
Imports: 0 kWh (1996)

Telephones: 1,500 (1988 est.)

Telephone system
Domestic: NA
International: satellite earth station_1 Intelsat (Pacific Ocean)

Military expenditures
Dollar figure: $NA
Percent of gdp: NA%

Airports: 3 (1998 est.)
With paved runways total: 1
With paved runways 15-24 to 2437 m: 1 (1998 est.)
With unpaved runways total: 2
With unpaved runways 15-24 to 2437 m: 2 (1998 est.)

Railways: 0 km

Merchant marine: none

Disputes international: none