Palau

Location

• Oceania, group of islands in the North Pacific Ocean, southeast of the Philippines
• westernmost archipelago in the Caroline chain, consists of six island groups totaling more than 300 islands; includes world-famous Rock Islands

Population

Notable Population Centers

City	Population	Note
Ngerulmud	1	Capital

Size

• 177 square miles
• 458 square kilometers
• slightly more than 2.5 times the size of Washington, D.C.

History

Humans arrived in the Palauan archipelago from Southeast Asia around 1000 B.C. and developed a complex, highly organized matrilineal society where high-ranking women picked the chiefs. The islands were the westernmost part of the widely scattered Pacific islands north of New Guinea that Spanish explorers named the Caroline Islands in the 17th century. The 18th and 19th centuries saw occasional visits of whalers and traders as Spain gained some influence in the islands and administered it from the Philippines. Spain sold Palau to Germany in 1899 after losing the Philippines in the Spanish-American War.Japan seized Palau in 1914, was granted a League of Nations mandate to administer the islands in 1920, and made Koror the capital of its South Seas Mandate in 1922. By the outbreak of World War II, there were four times as many Japanese living in Koror as Palauans. In 1944, the US invasion of the island of Peleliu was one of the bloodiest island fights of the Pacific War. After the war, Palau became part of the US-administered Trust Territory of the Pacific Islands.Palau voted against joining the Federated States of Micronesia in 1978 and adopted its own constitution in 1981, which stated that Palau was a nuclear-free country. In 1982, Palau signed a Compact of Free Association (COFA) with the US, which granted Palau financial assistance and access to many US domestic programs in exchange for exclusive US military access and defense responsibilities. However, many Palauans saw the COFA as incompatible with the Palauan Constitution because of the US military’s nuclear arsenal, and seven referenda failed to achieve ratification. Following a constitutional amendment and eighth referendum in 1993, the COFA was ratified and entered into force in 1994 when the islands gained their independence. Its funding was renewed in 2010.Palau has been on the frontlines of combatting climate change and protecting marine resources. In 2011, Palau banned commercial shark fishing and created the world’s first shark sanctuary. In 2017, Palau began stamping the Palau Pledge into passports, reminding visitors to act in ecologically and culturally responsible ways. In 2020, Palau banned coral reef-toxic sunscreens and expanded its fishing prohibition to include 80% of its exclusive economic zone.

Climate

tropical; hot and humid; wet season May to November

Terrain

varying topography from the high, mountainous main island of Babelthuap to low, coral islands usually fringed by large barrier reefs

Languages

Palauan (official on most islands) 65.2%, other Micronesian 1.9%, English (official) 19.1%, Filipino 9.9%, Chinese 1.2%, other 2.8% (2015 est.)note: Sonsoralese is official in Sonsoral; Tobian is official in Tobi; Angaur and Japanese are official in Angaur

Religions

Roman Catholic 46.9%, Protestant 30.9% (Evangelical 24.6%, Seventh Day Adventist 5%, other Protestant 1.4%), Modekngei 5.1% (indigenous to Palau), Muslim 4.9%, other 12.3% (2020 est.)

Government

presidential republic in free association with the US

• Constitution: history: ratified 9 July 1980, effective 1 January 1981amendment process: proposed by a constitutional convention (held at least once every 15 years with voter approval), by public petition of at least 25% of eligible voters, or by a resolution adopted by at least three fourths of National Congress members; passage requires approval by a majority of votes in at least three fourths of the states in the next regular general election
• Political Parties and Leaders: n/a
• Suffrage: 18 years of age; universal
• Legal System: mixed system of civil, common, and customary law
• Executive Branch: chief of state: President Surangel WHIPPS, Jr. (since 21 January 2021)head of government: President Surangel WHIPPS, Jr. (since 21 January 2021)cabinet: Cabinet appointed by the president with the advice and consent of the Senate; also includes the vice president; the Council of Chiefs consists of chiefs from each of the states who advise the president on issues concerning traditional laws, customs, and their relationship to the constitution and lawselection/appointment process: president and vice president directly elected on separate ballots by absolute-majority popular vote in 2 rounds, if needed, for a 4-year term (eligible for a second term)most recent election date: 5 November 2024election results: 2024: Surangel WHIPPS, Jr. elected president in second round; percent of vote - Surangel WHIPPS, Jr. (independent) 57.7%, Tommy REMENGESAU (independent) 42.1%, other 0.2% 2020: Surangel WHIPPS, Jr. elected president in second round; percent of vote - Surangel WHIPPS, Jr. (independent) 56.7%, Raynold OILUCH (independent) 43.3%expected date of next election: November 2028note: the president is both chief of state and head of government
• Judicial Branch: highest court(s): Supreme Court (consists of the chief justice and 3 associate justices organized into appellate trial divisions; the Supreme Court organization also includes the Common Pleas and Land Courts)judge selection and term of office: justices nominated by a 7-member independent body consisting of judges, presidential appointees, and lawyers and appointed by the president; judges can serve until mandatory retirement at age 65subordinate courts: National Court and other inferior courts
• Legislative Branch: legislature name: National Congress (Olbiil Era Kelulau)legislative structure: bicameral

Demographic Profile

n/a

Economy

• high-income Pacific island economy; environmentally fragile; subsistence agriculture and fishing industries; US aid reliance; rebounding post-pandemic tourism industry and services sector; very high living standard and low unemployment
• Budget: revenues: $127.757 million (2020 est.)expenditures: $152.398 million (2020 est.)note: central government revenues and expenses (excluding grants/extrabudgetary units/social security funds) converted to US dollars at average official exchange rate for year indicated
• Credit Rating: n/a
• Natural Resources: forests, minerals (especially gold), marine products, deep-seabed minerals
• Industries: tourism, fishing, subsistence agriculture
• Agricultural Products: coconuts, cassava (manioc, tapioca), sweet potatoes; fish, pigs, chickens, eggs, bananas, papaya, breadfruit, calamansi, soursop, Polynesian chestnuts, Polynesian almonds, mangoes, taro, guava, beans, cucumbers, squash/pumpkins (various), eggplant, green onions, kangkong (watercress), cabbages (various), radishes, betel nuts, melons, peppers, noni, okra
• Land Use: agricultural land: 9.3% (2022 est.)arable land: 0.7% (2022 est.)permanent crops: 4.3% (2022 est.)permanent pasture: 4.3% (2022 est.)forest: 90.4% (2022 est.)other: 0.3% (2022 est.)
• Labor Force by Occupation: n/a
• Imports
• Imported Commodities: ships, refined petroleum, additive manufacturing machines, cars, plastic products (2023)note: top five import commodities based on value in dollars
• Import Partners: Italy 32%, China 25%, USA 11%, Turkey 10%, Japan 6% (2023)note: top five import partners based on percentage share of imports
• Exports
• Exported Commodities: ships, refined petroleum (2023)note: top export commodities based on value in dollars over $500,000
• Export Partners: India 41%, Turkey 26%, Taiwan 10%, USA 9%, Japan 5% (2023)note: top five export partners based on percentage share of exports