Geography and Location
Palau, officially the Republic of Palau, is an island country located in the Micronesia subregion of Oceania in the western Pacific Ocean. The country consists of approximately 340 islands and comprises the western part of the Caroline Islands, while the eastern and central parts make up the Federated States of Micronesia.
With a total area of 466 square kilometers (180 square miles), Palau is the sixteenth smallest country in the world. The most populous island is Koror, which is home to the country's largest city of the same name. The capital, Ngerulmud, is located on Babeldaob, the largest island, in Melekeok State. Palau shares maritime boundaries with international waters to the north, the Federated States of Micronesia to the east, Indonesia to the south, and the Philippines to the northwest.
Early History
Palau was originally settled between the 3rd and 2nd millennia BCE by Austronesian peoples, most likely from what is now the Philippines or Indonesia. The islands were first drawn on a European map by Bohemian missionary Paul Klein in 1696, based on descriptions provided by a group of Palauans shipwrecked on the Philippine coast. Early Spanish explorers sighted parts of Palau as early as 1521, when Ferdinand Magellan's expedition spotted two small islands and named them "San Juan."
Colonial Era
The islands were made part of the Spanish East Indies in 1885. Following Spain's defeat in the Spanish–American War in 1898, the islands were sold to Germany in 1899 under the terms of the German–Spanish Treaty, where they were administered as part of German New Guinea.
After World War I, the islands were placed under Japanese administration by the League of Nations as part of the South Seas Mandate. During World War II, major skirmishes between American and Japanese troops occurred, including the significant Battle of Peleliu in 1944, which resulted in more than 2,000 American and 10,000 Japanese casualties.
Path to Independence
Following World War II, Palau became part of the United States–governed Trust Territory of the Pacific Islands in 1947. In 1978, Palau voted in a referendum against joining the Federated States of Micronesia and instead opted for independent status. The country approved a new constitution and became the Republic of Palau on January 1, 1981. Palau signed a Compact of Free Association with the United States in 1982, and this compact entered into force on October 1, 1994, granting Palau full sovereignty.
Government and Politics
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.
Economy and Currency
Palau's economy is based mainly on tourism, subsistence agriculture, and fishing, with a significant portion of gross national product derived from foreign aid. The country uses the United States dollar as its official currency.
Culture and Languages
The islands' culture mixes Micronesian, Melanesian, Asian, and Western elements. Ethnic Palauans, who comprise the majority of the population, are of mixed Micronesian, Melanesian, and Austronesian descent. A smaller proportion of the population is of Japanese descent.
The country's two official languages are Palauan, a member of the Austronesian language family, and English. The minor Micronesian languages Sonsorolese and Tobian, as well as Japanese, are recognized at the state level.
Etymology
The name for the islands in the Palauan language is Belau, which derives from the Palauan word for "village," beluu, or possibly from aibebelau, meaning "indirect replies," relating to a creation myth. The name "Palau" originated in the Spanish Los Palaos and eventually entered English via German. An archaic name for the islands in English was the "Pelew Islands."