Palau Background and Facts

12/18/2007 03:12 p.m.

Flag:

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.

Location: Oceania, group of islands in the North Pacific Ocean, southeast of the Philippines

Map:

Area: slightly more than 2.5 times the size of Washington, DC

Climate: tropical; hot and humid; wet season May to November

Ethnic Groups: 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)

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 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)

Economy: 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 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.

Currency: US dollar (USD)

Tags: country background and facts, palau

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