Republic of Palau

Beluu ęr a Belau Republic of Palau
Compact of Free Association


Anthem Belau loba klisiich er a kelulul


Capital	Melekeok

Government	Presidential republic
President
- From 2009	Johnson Toribiong

Legislature	National Congress
- Upper house	Senate
- Lower house	House of Delegates

History
- January 1, 1981	Autonomy under U.S. trusteeship
- October 1, 1994	Independence under a Compact of Free Association

Area	459 km²

Population
- 2011	20,956
Density	45.6/km²

GDP	2011 (PPP)
- Total	US$ 0.1 billion
- Per capita	US$ 8,100

Currency	US dollar

Pacific Islands
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The Republic of Palau is a presidential republic in Micronesia. Under the Compact of Free Association it has entered into a relationship as an associated state with the United States.

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.^[1]

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. 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.^[2]