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.
Palauan (Micronesian with Malayan and Melanesian admixtures) 69.9%, Filipino 15.3%, Chinese 4.9%, other Asian 2.4%, white 1.9%, Carolinian 1.4%, other Micronesian 1.1%, other or unspecified 3.2% (2000 census)
president and vice president elected on separate tickets by popular vote for four-year terms (eligible for a second term); election last held on 4 November 2008 (next to be held in November 2012)
Johnson TORIBIONG elected president; percent of vote - Johnson TORIBIONG 51%, Elias Camsek CHIN 49%
bicameral National Congress 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)
Senate - last held on 4 November 2008 (next to be held in November 2012); House of Delegates - last held on 4 November 2008 (next to be held in November 2012)
Senate - percent of vote - NA; seats - independents 9; House of Delegates - percent of vote - NA; seats - independents 16
light blue with a large yellow disk shifted slightly to the hoist side; the blue color represents the ocean, the disk represents the moon; Palauans consider the full moon to be the optimum time for human activity; it is also considered a symbol of peace, love, and tranquility
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. The Compact of Free Association with the US, entered into after the end of the UN trusteeship on 1 October 1994, provided Palau with up to $700 million in US aid for the following 15 years in return for furnishing military facilities. Business and tourist arrivals numbered 85,000 in 2007. The population enjoys a per capita income roughly 50% higher than 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.
no television broadcast stations; a cable television network covers the major islands and provides access to rebroadcasts, on a delayed basis, of a number of US stations as well as access to a number of real-time satellite TV channels; about a half dozen radio stations with 1 government-owned (2009)
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, but it has not stationed any military forces there (2008)