Republic of Palau
Introduction
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.
Capital
Ngerulmud
Official Languages
Palauan, English
Currency
United States Dollar (USD)
Location
Oceania, group of islands in the North Pacific Ocean, southeast of the Philippines
Area
Total: 459 Sq km Land: 459 sq km Water: 0 sq km
Climate
Tropical; hot and humid; wet season May to November
Natural resources
Forests, minerals (especially gold), marine products, deep-seabed minerals
Land use
Agricultural land: 10.8%arable land 2.2%; permanent crops 4.3%; permanent pasture 4.3%forest: 87.6%other: 1.6% (2011 est.
Economy
Overview
The economy consists of tourism and other services such as trade, subsistence agriculture, and fishing. Government is a major employer of the work force relying on financial assistance from the US under the Compact of Free Association (Compact) with the US. The Compact took effect, after the end of the UN trusteeship on 1 October 1994. The US provided Palau with roughly $700 million in aid for the first 15 years following commencement of the Compact in 1994 in return for unrestricted access to its land and waterways for strategic purposes. Business and leisure tourist arrivals numbered over 125,000 in fiscal year 2014, a 13.4% increase over the previous year. The population enjoys a per capita income roughly double that of the Philippines and much of Micronesia. Long-run prospects for tourism have been bolstered by the expansion of air travel in the Pacific, the rising prosperity of industrial East Asia, and the willingness of foreigners to finance infrastructure development. Proximity to Guam, the region's major destination for tourists from East Asia, and a regionally competitive tourist infrastructure enhance Palau's advantage as a destination.
Agriculture Products
Coconuts, copra, cassava (manioc, tapioca), sweet potatoes; fish
Industries
Tourism, craft items (from shell, wood, pearls), construction, garment making
Exports Commodities
Shellfish, tuna, copra, garments
Imports Commodities
Machinery and equipment, fuels, metals; foodstuffs
Useful Links
Government of Republic of Palau
Palau Chamber of commerce
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