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: 458 sq km; land: 458 sq km; water: 0 sq km

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: 3 nm; exclusive 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; 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

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: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Law of the Sea, Ozone Layer Protection; signed, but not ratified: none of the selected agreements

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: 26.4% (male 2,768/female 2,601); 15-64 years: 69% (male 7,565/female 6,436); 65 years and over: 4.6% (male 443/female 490) (2005 est.)

Median age: total: 31.43 years; male: 32.4 years; female: 30.36 years (2005 est.)

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: 1.06 male(s)/female; under 15 years: 1.06 male(s)/female; 15-64 years: 1.18 male(s)/female; 65 years and over: 0.9 male(s)/female; total population: 1.13 male(s)/female (2005 est.)

Infant mortality rate: total: 14.84 deaths/1,000 live births; male: 16.6 deaths/1,000 live births; female: 12.99 deaths/1,000 live births (2005 est.)

Life expectancy at birth: total population: 70.14 years; male: 66.98 years; female: 73.48 years (2005 est.)

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: Palauan(s); adjective: Palauan

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: age 15 and over can read and write; total population: 92%; male: 93%

female: 90% (1980 est.)

Government

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: 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: 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

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 estimate includes US subsidy (2001 est.)

GDP - real growth rate: 1% (2001 est.)

GDP - per capita: purchasing power parity - $9,000 (2001 est.)

GDP - composition by sector: agriculture: NA; industry: NA; services: NA

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%: NA; highest 10%: NA

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

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

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

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

Industrial production growth rate: 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)

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: NA; domestic: NA; international: country code - 680; satellite earth station - 1 Intelsat (Pacific Ocean)

Radio broadcast stations: AM 1, FM 4, shortwave 1 (2002)

Television broadcast stations: 1 (cable) (2005)

Internet country code: .pw

Transportation

Highways: total: 61 km; paved: 36 km; unpaved: 25 km

Ports and harbors: Koror

Airports: 3 (2004 est.)

Airports - with paved runways: total: 1; 1,524 to 2,437 m: 1 (2004 est.)

Airports - with unpaved runways: total: 2; 1,524 to 2,437 m: 2 (2004 est.)

Transnational Issues

Disputes - international: border delineation disputes being negotiated with Philippines, Indonesia.