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.

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: 1519 km

Maritime claims
Territorial sea: 3 nm
Exclusive fishing zone: 12 nm
Extended fishing zone: 200 nm

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

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

Land use
Arable land: 8.7%
Permanent crops: 4.35%
Other: 86.95% (2001)

Irrigated land: NA km²

Natural hazards: typhoons (June to December)

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

Population: 20,016 (July 2004 est.)
Growth rate: 1.46% (2004 est.)
Below poverty line: NA

Nationality
Noun: Palauan
Adjective: Palauan

Ethnic groups: Palauan (Micronesian with Malayan and Melanesian admixtures) 70% Asian (mainly Filipinos followed by Chinese Taiwanese and Vietnamese) 28% white 2% (2000 est.)

Languages: English and Palauan official in all states except Sonsoral (Sonsoralese and English are official) Tobi (Tobi and English are official) and Angaur (Angaur Japanese and English are official)

Religions: Christian (Roman Catholics 49% 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: 26.6% (male 2,746; female 2,578)
15-64 years: 68.8% (male 7,456; female 6,319)
65 years and over: 4.6% (male 437; female 480) (2004 est.)

Median age
Total: 31.1 years
Male: 32.1 years
Female: 30 years (2004 est.)

Population growth rate: 1.46% (2004 est.)

Birth rate: 18.69 births/1000 population (2004 est.)

Death rate: 6.89 deaths/1000 population (2004 est.)

Net migration rate: 2.85 migrant(s)/1000 population (2004 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, Climate Change, Climate Change-Kyoto Protocol, Desertification, Law of the Sea, Ozone Layer Protection
International agreements signed but not ratified: none of the selected agreements

Sex ratio
At birth: 1.06 male/female
Under 15 years: 1.07 male/female
15-64 years: 1.18 male/female
65 years and over: 0.91 male/female
Total population: 1.14 male/female (2004 est.)

Infant mortality rate
Total: 15.3 deaths/1000 live births
Male: 17.07 deaths/1000 live births
Female: 13.42 deaths/1000 live births (2004 est.)

Life expectancy at birth
Total population: 69.82 years
Male: 66.67 years
Female: 73.15 years (2004 est.)

Total fertility rate: 2.46 children born/woman (2004 est.)

Hivaids
Adult prevalence rate: NA
People living with hivaids: NA
Deaths: NA

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: Palau District (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: 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: President Tommy Esang REMENGESAU, Jr. (since 19 January 2001) and Vice President Camsek CHIN (since 1 January 2005); note - the president is both the chief of state and head of government
Head of government: President Tommy Esang REMENGESAU, Jr. (since 19 January 2001) and Vice President Camsek CHIN (since 1 January 2005); 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 2 November 2004 (next to be held November 2008)
Election results: Tommy Esang REMENGESAU, Jr. reelected president; percent of vote - Tommy Esang REMENGESAU, Jr. 64%, Polycarp BASILIUS 33%; Elias Camsek CHIN elected vice president; percent of vote - Elias Camsek CHIN 70%, Sandra PIERANTOZZI 29%

Legislative branch
Elections: Senate - last held 2 November 2004 (next to be held November 2008); House of Delegates - last held 2 November 2004 (next to be held November 2008)
Election results: Senate - percent of vote - NA%; seats - independents 9 (four new members elected); House of Delegates - percent of vote - NA%; seats - independents 16 (one new member elected)

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

Political parties and leaders: none

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: Ambassador Hersey KYOTA
In the us chancery: 1800 K Street NW, Suite 714, Washington, DC 20,006
In the us telephone: [1] (202) 452-6,814
In the us fax: [1] (202) 452-6,281
In the us consulates: Saipan (Northern Mariana Islands)
From the us chief of mission: Ambassador Francis J. RICCIARDONE, US ambassador to the Philippines is accredited to Palau
From the us embassy: Koror (no street address)
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 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 50,000 in FY00/01. 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.

Real gdp growth rate: 1% (2001 est.)

Real gdp per capita: purchasing power parity - $9,000 (2001 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) construction garment making

Industrial production growth rate: NA

Labor force: 9,845 (2000)
By occupation agriculture: 20%
By occupation industry: NA
By occupation services: NA
Note: (1990)

Unemployment rate: 2.3% (2000 est.)

Population below poverty line: NA

Household income or consumption by percentage share
Lowest 10: NA
Highest 10: NA

Budget
Revenues: $57.7 million
Expenditures: $80.8 million, including capital expenditures of $17.1 million (FY98/99 est.)

Fiscal year: 1 October - 30 September

Inflation rate consumer prices: 3.4% (2000 est.)

Exports: $18 million f.o.b. (2001 est.)
Commodities: shellfish tuna copra garments
Partners: US Japan Singapore (2000)

Imports: $99 million f.o.b. (2001 est.)
Commodities: machinery and equipment fuels metals; foodstuffs
Partners: US Guam Japan Singapore Korea (2000)

Debt external: $0 (FY99/00)

Exchange rates: the US dollar is used

Telephones
Main lines in use: 6,700 (2002)
Mobile cellular: 1000 (2002)

Telephone system
General assessment: NA
Domestic: NA
International: country code - 680; satellite earth station - 1 Intelsat (Pacific Ocean)

Internet
Country code: .pw

Military expenditures
Dollar figure: NA
Percent of gdp: NA

Airports: 3 (2003 est.)
With paved runways total: 1
With paved runways 15-24 to 2437 m: 1 (2004 est.)
With unpaved runways total: 2
With unpaved runways 15-24 to 2437 m: 2 (2004 est.)

Merchant marine: none

Disputes international: border delineation disputes being negotiated with Philippines Indonesia