Politically, Palau is apresidential republic infree association with the United States, which provides defense, funding, and access to social services. Legislative power is concentrated in thebicameralPalau National Congress.Palau's economy is based mainly on tourism,subsistence agriculture and fishing, with a significant portion of gross national product (GNP) derived from foreign aid. The country uses the United States dollar as its official currency. The islands' culture mixes Micronesian,Melanesian, Asian, and Western elements. Ethnic Palauans, the majority of the population, are of mixedMicronesian,Melanesian, andAustronesian descent. A smaller proportion of the population is of Japanese descent. The country's twoofficial languages arePalauan (a member of theAustronesian language family) and English, with Japanese,Sonsorolese, andTobian recognized asregional languages.
The name for the islands in thePalauan language,Belau, derives from the Palauan word for "village",beluu (thus ultimately fromProto-Austronesian *banua),[15] or fromaibebelau ("indirect replies"), relating to acreation myth.[16] The name "Palau" originated in the SpanishLos Palaos, eventually entering English via the GermanPalau. An archaic name for the islands in English was the "Pelew Islands".[17] The name of the country "Palau" is most likely not derived from the Malay word "Pulau," despite the similarity in its word form. In Malay, "pulau" means "island," which is also a geographical characteristic of Palau as an archipelago in the Pacific Ocean.
Palau was originally settled between the 3rd and 2nd millennia BCE, most likely from the Philippines or Indonesia.[18]Sonsorol was sighted by theSpanish as early as 1522, when theSpanish mission of theTrinidad, the flagship ofFerdinand Magellan's voyage of circumnavigation, sighted two small islands around the5th parallel north, naming them "San Juan".[19]
In December 1696, a group of sailors from theCaroline Islands were stranded onSamar, nearGuiuan, when they met European missionaryPaul Klein. Using pebbles, the sailors attempted to show Klein the approximate location and size of the islands. He used this information to produce the first European map of the Palau area. Klein sent the map toJesuit Superior General, along with a letter detailing the names of the islands, the culture of the people, and his experiences with them.[20]
An 1888 map showing the Palau Islands of the Spanish East Indies (excluding the Philippine Islands)Village on the Palau Islands, painting byRudolf Hellgrewe c. 1908Koror chiefs in 1915
The Klein map and letter caused a vast interest in the new islands. Another letter written by Fr. Andrés Serrano was sent to Europe in 1705, essentially copying the information given by Klein. The letters resulted in three unsuccessful Jesuit attempts to travel to Palau fromSpanish Philippines in 1700, 1708, and 1709. The islands were first visited by the Jesuit expedition led by Francisco Padilla on 30 November 1710. The expedition ended with the stranding of the two priests, Jacques Du Beron and Joseph Cortyl, on the coast of Sonsorol, because the mother shipSantísima Trinidad was driven toMindanao by a storm. Another ship was sent fromGuam in 1711 to save them only to capsize, causing the death of three more Jesuit priests. The failure of these missions gave Palau the original Spanish nameIslas Encantadas (Enchanted Islands).[21]
British traders became regular visitors to Palau in the 18th century (the British East India Company packet shipAntelope shipwrecked offUlong Island in 1783, leading toPrince Lee Boo's visit to London), followed by expanding Spanish influence in the 19th century. Palau, under the namePalaos, was included in theMalolos Congress in 1898, the first revolutionary congress in the Philippines, which wanted full independence from colonialists. Palau was part of theSpanish East Indies headquartered in the Spanish Philippines. Palau had one appointed member to the Congress, becoming the only group of islands in the entireCaroline Islands granted high representation in a non-colonial Philippine Congress. Congress also supported the right of Palau to self-determination if ever it wished to pursue such a path.[22]
During World War II, the United States captured Palau from Japan in 1944 after the costlyBattle of Peleliu, when more than 2,000 Americans and 10,000 Japanese were killed, and later theBattle of Angaur. In 1945–1946, the United States re-established control of the Philippines and managed Palau through the Philippine capital ofManila. By the latter half of 1946, however, the Philippines was granted full independence with the formation of theThird Republic of the Philippines, shifting the U.S. Far West Pacific capital toGuam. Palau was passed formally to the United States under United Nations auspices in 1947 as part of theTrust Territory of the Pacific Islands established pursuant toSecurity Council Resolution 21.[citation needed][24][25]
Four of the Trust Territory districts joined and formed theFederated States of Micronesia in 1979, but the districts of Palau and theMarshall Islands voted against the proposed constitution. Palau, the westernmost cluster of the Carolines, instead opted for independent status in 1978, which was widely supported by the Philippines,Taiwan, and Japan. It approved a new constitution and became the Republic of Palau on 1 January 1981.[26] It signed aCompact of Free Association with the United States in 1982. In the same year, Palau became one of the founding members of theNauru Agreement. The compact entered into force on 1 October 1994,[27] concluding Palau's transition from trusteeship to independence[28] as the last portion of theTrust Territory of the Pacific Islands to secure its independence pursuant toSecurity Council Resolution 956. Palau also became a member of thePacific Islands Forum but withdrew in February 2021 after a dispute regardingHenry Puna's election as the forum's secretary-general.[29][30] Legislation making Palau an "offshore" financial center was passed by theU.S. Senate in 1998.[31]
In 2005, Palau led theMicronesia Challenge, which would conserve 30% of near-shore coastal waters and 20% of forest land of participating countries by 2020. In 2009, Palau created the world's firstshark sanctuary, banning commercial shark fishing within its waters. In 2012, theRock Islands of Palau was declared as aUNESCO World Heritage Site.[32]
In 2015, Palau became a member of theClimate Vulnerable Forum under the chairmanship of the Philippines, and at the same time, the country officially protected 80% of its water resources, becoming the first country to do so.[33] The protection of its water resources made significant increases in the country's economy in less than two years.[34] In 2017, it became the first state in the world to establish an eco-promise, known as thePalau Pledge, which is stamped on local and foreign passports.[35] In 2018, Palau and the Philippines began re-connecting their economic and diplomatic relations. The Philippines supported Palau to become an observer state inASEAN.
The Compact of Free Association between the United States and Palau[36] sets forth the free and voluntary association of their governments. It primarily focuses on the issues of government, economic, security, and defense relations.[37] Palau has no independent military, relying on the United States for its defense. Under the compact, theAmerican military was granted access to the islands for 50 years. TheU.S. Navy role is minimal, limited to a handful of NavySeabees (construction engineers).[citation needed] TheU.S. Coast Guard patrols in national waters. The government has agreed to host a largeUnited States Air Force high-frequency radar station in Palau, anover-the-horizon-radar system costing well over $100 million, which is expected to be operational in 2026.[38][39]
As a sovereign state, Palau conductsits own foreign relations.[28] Since independence, Palau has established diplomatic relations with numerous countries, including many of its Pacific neighbors, like Micronesia and the Philippines. On 29 November 1994, theUnited Nations Security Council passedResolution 963 recommending Palau's admission to the United Nations. TheUnited Nations General Assembly approved admission for Palau pursuant to Resolution 49/63 on 15 December 1994.[41] Palau has since joined several other international organizations. In September 2006, Palau hosted the first Taiwan-Pacific Allies Summit. Its president has made official visits to other Pacific countries, including Japan.[42] Taiwan has provided financial support for Palau to maintain a presence at international fora, including theUnited Nations andUnited Nations Climate Change Conference.[43]
Flags of countries who have foreign relations with Palau,Palasia Hotel
The United States maintains a diplomatic delegation and an embassy in Palau, but most aspects of the countries' relationship have to do with compact-funded projects, which are the responsibility of the U.S.Department of the Interior'sOffice of Insular Affairs.[44][failed verification] For example, as part of this compact, Palau was grantedZIP Codes 96939 and 96940, along with regularU.S. Mail delivery. In international politics, Palau often votes in tandem with the United States onUnited Nations General Assembly resolutions.[45]
Palau has maintained close ties with Japan, which has funded infrastructure projects, including theKoror–Babeldaob Bridge. In 2015, EmperorAkihito andEmpress Michiko visitedPeleliu to honor the 70th anniversary of World War II.[46]
In 1981, Palau voted for the world's first nuclear-free constitution. This constitution banned the use, storage, and disposal ofnuclear,toxic chemical, gas, andbiological weapons without first being approved by a 75 percent majority in a referendum.[47] This ban delayed Palau's transition to independence because while negotiating the compact, the U.S. insisted on the option to operatenuclear-propelled vessels and store nuclear weapons within the territory,[48] prompting campaigns for independence.[49] In 2017, Palau signed the United NationsTreaty on the Prohibition of Nuclear Weapons.[50]
Palau is a member of theNauru Agreement for the Management of Fisheries.[51] The Philippines, a neighboring ally of Palau to the west has expressed its intent to back Palau if ever it wishes to joinASEAN.[52]
In June 2009, Palau announced that it wouldaccept up to seventeenUyghurs who had previously been detained by the American military atGuantanamo Bay,[53] with some American compensation for the cost of their upkeep.[54] Only one of the Uyghurs initially agreed to resettlement,[55] but by the end of October, six of the seventeen had been transferred to Palau.[56] An aid agreement with the United States, finalized in January 2010, was reported to be unrelated to the Uyghur agreement.[57]
Palau is divided into sixteen states (until 1984 called municipalities). These are listed below with their areas (in square kilometers) and 2015 and 2020 Census populations:
In the view ofIslands Society president Michael Walsh, Palau is a key example of the successes of modern state-building in the Indo-Pacific region. It has successfully transitioned peacefully from colonial rule to full admission to the United Nations. Palau has maintained strong foreign relations with its neighbors in its region of Oceania. There have also been pushes for Palau to have observer status to the ASEAN as a demonstration of its growing influence in the region.[63] However, Palau's peaceful transition to fully autonomous sovereign state is not without debate.
Palau is hugely reliant on international aid, as demonstrated by President Surangel Whipps Jr address to the UN General Assembly in 2021.[64] American influence has led some to contest that there are challenges to its sovereignty with its reliance on the American military under the Compact of Free Association, although not officially designated a de factoprotectorate or otherwise. American influence has resulted in huge changes to Palau's society, economy, and political processes, and as such Palau may not yet be seen as a fully independent state or a fully realized success of modern state-building.[65]
Share of forest area in total land area, top countries (2021). Palau has the fifth highest percentage of forest cover in the world.
Palau's territory consists of an archipelago located in the Pacific Ocean. Its most populous islands areAngaur,Babeldaob,Koror andPeleliu. The latter three lie together within the samebarrier reef, while Angaur is an oceanic island several kilometers to the south. About two-thirds of the population lives on Koror. The coralatoll ofKayangel is north of these islands, while the uninhabitedRock Islands (about 200) are west of the main island group. A remote group of six islands, known as theSouthwest Islands, some 604 kilometers (375 miles) from the main islands, make up the states of Hatohobei and Sonsorol.
Palau has atropical rainforest climate with an annual mean temperature of 28 °C (82 °F). Rainfall is heavy throughout the year, averaging 3,800 mm (150 in). The average humidity is 82% and, although rain falls more frequently between June and October, there is still much sunshine. Palau lies on the edge of the typhoon belt. Tropical disturbances frequently develop near Palau every year, but significanttropical cyclones are quite rare.Mike,Bopha andHaiyan are the only systems that struck Palau as typhoons on record.[66]
Palau has a history of strong environmental conservation. For example,Ngerukewid islands and the surrounding area are protected under the Ngerukewid Islands Wildlife Preserve, which was established in 1956.[68] While much of Palau remains free ofenvironmental degradation, areas of concern include illegaldynamite fishing, inadequatesolid waste disposal facilities in Koror, and extensive sand and coraldredging in the Palau lagoon.
One species ofsaltwater crocodile,Crocodylus porosus, is indigenous to Palau, occurring in varying numbers throughout themangroves and in parts of the Rock Islands. Although this species is generally considered extremely dangerous, there has only been one fatal human attack, on 28 December 1965, in Palau in modern history.[70] This attack led to a crocodile eradication program and trade in crocodile hides that ran into the 1980s. A management and conservation program running since the 1990s has led to a stabilization of the Palauan crocodile population.[71]
On 5 November 2005,President Tommy E. Remengesau Jr. took the lead on a regional environmental initiative called the Micronesia Challenge, which would conserve 30% of near-shore coastal waters and 20% offorest land by 2020. Following Palau, the initiative was joined by the Federated States of Micronesia, the Marshall Islands, and the US territories of Guam andNorthern Mariana Islands. Together, this combined region represents nearly 5% of the marine area of the Pacific Ocean and 7% of its coastline.
On 25 September 2009, Palau announced that it would create the world's firstshark sanctuary.[74] Palau banned all commercial shark fishing within the waters of itsexclusive economic zone. The sanctuary protects about 600,000 square kilometers (230,000 sq mi) of ocean,[75] a similar size to France.[76][77][78] PresidentJohnson Toribiong announced the sanctuary at a meeting of the United Nations.[76][79][80] Toribiong proposed a worldwide ban on fishing for sharks.[76] In 2012, Palau received the Future Policy Award fromWorld Future Council, because "Palau is a global leader in protecting marine ecosystems".[81]
The artificially madeGerman Channel is one of the most populardivesites. It is also a major transport route for boats that connects the lagoon to the Pacific Ocean in the south-west.Aerial view ofKoror–Babeldaob Bridge in 2016
Palau's economy consists primarily of tourism, subsistence agriculture, and fishing. Tourist activity focuses on scuba diving and snorkeling in the islands' rich marine environment, including itsbarrier reefs' walls and World War II wrecks. In April 2022, Palau launchedOl'au Palau, a responsible tourism program aimed to preserve the country's natural environment and traditional culture.[82] The government is the largest employer, relying heavily on US financial assistance. Business and tourist arrivals numbered some 50,000 in fiscal year 2000–2001.[citation needed]
Although Palau's ship registry represents less than 0.001% of the world fleet of commercial ships, it contains almost 60% of last-voyage flags in 2019. It suggests that the registry is used by shipping companies to evade end-of-life responsibilities. These responsibilities entail the decommissioning of a ship in such a way that the environmental impact and labor conditions are in order.[83]
The population enjoys a per capita income twice that ofMicronesia as a whole. Long-term prospects for the key tourist sector have been greatly bolstered by the expansion of air travel in thePacific Rim, the rising prosperity of leading East Asian countries and the willingness of foreigners to finance infrastructure development.[citation needed]
In November 2006,Pacific Saving Bank officially announced bankruptcy. On 13 December 2006, thePalau Horizon reported that 641depositors had been affected. Among them, 398 held less thanUS$5,000, with the remainder ranging from US$5,000 to US$2 million. On 12 December, 79 affected people received compensation. Toribiong said, "The fund for the payout came from the balance of the Palau government's loan fromTaiwan." From a total of US$1 million, which originally was for assisting Palau's development, US$955,000 was left at the time of bankruptcy. Toribiong requested the Taiwanese government use the balance to repay its loans. Taiwan agreed to the request. The compensation would include those who held less than US$4,000 in an account.[84]
The income tax has three brackets withprogressive rates of 9.3 percent, 15 percent, and 19.6 percent respectively.Corporate tax is four percent, and the Palau Goods and Services Tax was introduced on 1 January 2023. It is a broad-based tax of 10%, applied to most goods and services and other items sold or consumed in Palau.[85] There are noproperty taxes.
Palau is served by an 80-bed hospital, Belau National Hospital. With some medical specialties, there is no such specialty care in Palau necessitating medical care in Taiwan, the Philippines, or Hawaii.[88] There are no dermatologists or ophthalmologists (eye specialists) in Palau.[89] VEGF drugs for diabetic eye diseases cannot be given for eye conditions so laser surgery is done by visiting American ophthalmologists.[89] Belau National Hospital cannot treat certain brain hemorrhages necessitating emergency airlift to Taiwan.[90]
In May 2024,Nauru Airlines started direct weekly flights toBrisbane, Australia. The six-hour flight operated by B-737 aircraft depart Brisbane on Tuesdays at 23:30, arriving at Palau International Airport on the main island of Babeldaob at 04:30. Southbound flights will depart Palau on Wednesdays at 10:30, arriving in Brisbane at 05:30.[92]
Freight, military, and cruise ships often call at Malaehaka Harbor, onMalakal Island outside Koror. The country has no railways, and of the 61 km or 38 mi of highways, only 36 km or 22 mi are paved. Driving is on the right, and the speed limit is 40 km/h (25 mph). Taxis are available in Koror. They are not metered, and fares are negotiable. Transportation between islands mostly relies on private boats and domestic air services. However, there are some state-run boats[93] between islands as a cheaper alternative.
The population of Palau is approximately 21,779 (2023),[94] 73% of whom are native Palauans of mixedMelanesian andAustronesian descent. There are many Asian communities within Palau.Filipinos form the largest Asian group and second largest ethnic group in the country, dating back to the Spanish colonial period. There are significant numbers ofChinese andKoreans. There are also smaller numbers of Palauans of mixed or fullJapanese ancestry. Most Palauans of Asian origin came during the late 20th century with many Chinese, Bangladeshis, and Nepalese coming to Palau as unskilled workers and professionals.[95] There are also small numbers of Europeans and Americans.
The official languages of Palau arePalauan and English, except in two states (Sonsorol andHatohobei) where the local languages,Sonsorolese andTobian, respectively, along with Palauan, are official.Japanese is spoken by some older[citation needed] Palauans, and is an official language inAngaur.[96][97] Because of the inheritance of the education system from the Republic's time as a trust territory, English is a core subject within the Palauan Education System, with a majority of its population utilizing it as a second language.A local dialect influenced byPhilippine English is developing.
The German and Japanese occupations of Palau both subsidized missionaries to follow the Spanish. Germans sent Roman Catholics and Protestants, the Japanese sent Shinto and Buddhist, and the Spaniards sent Roman Catholic missionaries as they controlled Palau. Three-quarters of the population are Christians (mainly Roman Catholics and Protestants), whileModekngei (a combination of Christianity, traditional Palauan religion and fortune telling) and the ancient Palauan religion are commonly observed. Japanese rule broughtMahayana Buddhism andShinto to Palau, which was the majority religion among Japanese settlers. However, following Japan's World War II defeat, the remaining Japanese largely converted to Christianity, while some continued to observe Buddhism but stopped practicing Shinto rites.[98] There are approximately 400Bengali Muslims.
Palauan society follows a very strictmatrilineal system. Matrilineal practices are seen in nearly every aspect of Palauan traditions, especially in funerals, marriages, inheritance, and the passing of traditional titles.
The cuisine includes local foods such ascassava,taro,yam, potato, fish and pork. It is also heavily influenced by Japanese, American, andFilipino cuisine, because of the significant presence of Filipino migrant workers.Fruit bat soup is a Palauan delicacy.[99] Some local drinks include an alcoholic drink made from a coconut on the tree; a drink made from the roots of thekava; and the chewing ofbetel nuts. A dessert calledtama was developed in Palau.[100]
Primary education is required until age 16. Schools include both public (includingPalau High School) and private institutions as well as some fields of study available atPalau Community College. For further undergraduate, graduate, and professional programs, students travel abroad to attend tertiary institutions, primarily in the United States. Palau offers distance learning throughSan Diego State University and theUniversity of the South Pacific.[103]
^"2015 Statistical Yearbook"(PDF). Republic of Palau Bureau of Budget and Planning Ministry of Finance. 1 February 2016.Archived from the original on 11 March 2023. Retrieved21 August 2018.
^Nakayama, Tosiwo; Henry, Bethwel (14 September 1978)."Letter to the United Nations"(PDF). United Nations. pp. 8–10.Archived(PDF) from the original on 12 June 2021. Retrieved12 June 2021.
^Etpison, Mandy (1994)."About Palau".Palau – Portrait of Paradise. Neco Marine Corp.ISBN9780963787507.Archived from the original on 19 April 2001. Retrieved15 January 2023.
^"Palau".histclo.com.Archived from the original on 25 December 2022. Retrieved12 November 2022.
^"Palau Ships".micsem.org.Archived from the original on 10 May 2012. Retrieved12 November 2022.
^Morei, Cita (1998), "Planting the mustard seed of world peace", inde Ishtar, Zohl (ed.),Pacific women speak out for independence and denuclearisation, Christchurch, Aotearoa/New Zealand Annandale, New South Wales, Australia: Women's International League for Peace and Freedom (Aotearoa) Disarmament and Security Centre (Aotearoa) Pacific Connections,ISBN9780473056667
^"Palau receives aid boost from US".australianetworknews.com. 30 January 2010. Archived fromthe original on 11 May 2011.The president insisted there was no link to the island's hosting of six inmates from Guantanamo Bay. Palau had earlier rejected a 156 million dollar offer and the settlement came after the island nation agreed to resettle six Muslim Uighurs who had been held for more than seven years at the US naval base at Guantanamo Bay. The six arrived in Palau in November. But Johnson said the two issues were not related.
^abL.N. Reklai (25 April 2017).""Euatel" patrol boat handover today".islandtimes.us.Archived from the original on 23 April 2018. Retrieved22 April 2018.This is third in the series of patrol boats of this size donated by The Nippon Foundation to Palau. Kabekl M'tal was donated in 2012 and Bul was donated in 2014.
^Ongerung Kambes Kesolei, Tia Belau (22 December 2017)."Palau Gets New Patrol Boat".www.pacificnote.com/.Archived from the original on 23 April 2018. Retrieved22 April 2018.
^Bernadette H. Carreon (3 March 2016)."Palau's maritime surveillance gets boost with new patrol boat".www.postguam.com.Koror, Palau. Retrieved22 April 2018.Palau currently has a lone patrol boat, PSS H.I Remeliik, that is about 31.5 meters long. The Remeliik was donated by the Australian government in 1996. The vessel is scheduled to get an upgrade funded by the Australian government by 2018.
^Urbina, Ian (21 February 2016),"Palau vs the Poachers",The New York Times Magazine, pp. 40–49,archived from the original on 20 April 2018, retrieved23 April 2018,Nearly 9,000 miles [14,000 km] away, the Remeliik, a police patrol ship from the tiny island nation Palau, was pursuing a 10-man Taiwanese pirate ship, the Shin Jyi Chyuu 33, through Palauan waters.
^Webb, Grahame J.W.; Manolis, S. Charlie; Brien, Matthew L. (2010)."Saltwater CrocodileCrocodylus porosus"(PDF). In Manolis, S.C.; Stevenson, C. (eds.).Crocodiles. Status Survey and Conservation Action Plan (third ed.). Darwin, Northern Territory, Australia: Crocodile Specialist Group. pp. 99–113.Archived(PDF) from the original on 20 July 2021. Retrieved23 September 2021.
^Centre, UNESCO World Heritage."Rock Islands Southern Lagoon".UNESCO World Heritage Centre.Archived from the original on 14 April 2019. Retrieved14 April 2019.
^Centre, UNESCO World Heritage."Palau".UNESCO World Heritage Centre.Archived from the original on 14 April 2019. Retrieved14 April 2019.