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Republic of Palau

Capital: Ngerulmud

HDI: 0.780 (60th)

Languages: English, Palauan

GDP (PPP): $288 million

Currency: US Dollar

Population: 17,948

The Republic of Palau is an island country located in the western Pacific Ocean. The country contains approximately 250 islands, forming the western chain of the Caroline Islands in Micronesia, and has an area of 466 square kilometres (180 sq mi). The most populous island is Koror. The capital Ngerulmud is located on the nearby island of Babeldaob, in Melekeok State. Palau shares maritime boundaries with Indonesia, the Philippines, and the Federated States of Micronesia.

The Imperial Japanese Navy conquered Palau during World War I, and the islands were later made a part of the Japanese-ruled South Pacific Mandate by the League of Nations. During World War II, skirmishes, including the major Battle of Peleliu, were fought between American and Japanese troops as part of the Mariana and Palau Islands campaign. Along with other Pacific Islands, Palau was made a part of the United States-governed Trust Territory of the Pacific Islands in 1947.

Politically, Palau is a presidential republic in free association with the United States, which provides defense, funding, and access to social services. Legislative power is concentrated in the bicameral Palau 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 currency. The islands’ culture mixes Micronesian, Melanesian, Asian, and Western elements. Ethnic Palauans, the majority of the population, are of mixed Micronesian, Melanesian, and Austronesian descent. A smaller proportion of the population is descended from Japanese and Filipino settlers. The country’s two official languages are Palauan (a member of the wider Sunda–Sulawesi language group) and English, with Japanese, Sonsorolese, and Tobian recognised as regional languages.

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