Palau

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It has a total area of 466 square kilometers (180 sq mi), making it the sixteenth smallest country in the world. The most populous island is Koror, home to the country's most populous city of the same name. The capital, Ngerulmud, is located on the largest island of Babeldaob, 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.

The country was originally settled approximately 1,000 BCE by migrants from Maritime Southeast Asia.

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Etymology

The name for the islands in the Palauan language, Belau, derives from the Palauan word for "village", beluu (thus ultimately from Proto-Austronesian *banua), or from aibebelau ("indirect replies"), relating to a creation myth. The name "Palau" originated in the Spanish Los Palaos, eventually entering English via the German Palau. An archaic name for the islands in English was the "Pelew Islands". The name of the country "Palau" is most likely not derived from the Malay word Pulau (island), despite the similarity in its word form.

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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. Sonsorol was sighted by the Spanish as early as 1521, when the Spanish mission of the Trinidad, the flagship of Ferdinand Magellan's voyage of circumnavigation, sighted two small islands around the 5th parallel north, naming them "San Juan".

In December 1696, a group of sailors from the Caroline Islands were stranded on Samar, near Guiuan, when they met European missionary Paul Klein.

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Politics and government

Palau is a democratic republic. The President of Palau is both head of state and head of government. Executive power is exercised by the government, while legislative power is vested in both the government and the Palau National Congress. The judiciary is independent of the executive and the legislature. Palau adopted a constitution in 1981.

The Compact of Free Association between the United States and Palau sets forth the free and voluntary association of their governments. It primarily focuses on the issues of government, economic, security, and defense relations.

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Geography

Palau's territory consists of an archipelago located in the Pacific Ocean. Its most populous islands are Angaur, Babeldaob, Koror and Peleliu. The latter three lie together within the same barrier reef, while Angaur is an oceanic island several kilometers to the south. About two-thirds of the population lives on Koror. The coral atoll of Kayangel is north of these islands, while the uninhabited Rock Islands (about 200) are west of the main island group. A remote group of six islands, known as the Southwest Islands, some 604 kilometers (375 miles) from the main islands, make up the states of Hatohobei and Sonsorol.

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Economy

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 its barrier reefs' walls and World War II wrecks. In April 2022, Palau launched Ol'au Palau, a responsible tourism program aimed to preserve the country's natural environment and traditional culture. The government is the largest employer, relying heavily on US financial assistance. Business and tourist arrivals numbered 65,558 in fiscal year 2025.

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Healthcare

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. There are no dermatologists or ophthalmologists in Palau. VEGF drugs for diabetic eye diseases cannot be given for eye conditions so laser surgery is done by

visiting American ophthalmologists. Belau National Hospital cannot treat certain brain hemorrhages necessitating emergency airlift to Taiwan.

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Transportation

Palau International Airport provides scheduled direct flights with Guam (Antonio B. Won Pat International Airport), Manila (Ninoy Aquino International Airport), Brisbane (Brisbane Airport) and Taipei (Taoyuan International Airport). In addition, the states of Angaur and Peleliu have regular service to domestic destinations.

Air service has at times been spotty. Palau Micronesia Air, Asian Spirit and Pacific Flier provided service to the Philippines and other destinations at various times during the 2000s, but all suspended service.

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Demographics

The population of Palau is approximately 21,947 (2025), 73% of whom are native Palauans of mixed Melanesian and Austronesian 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 of Chinese and Koreans. There are also smaller numbers of Palauans of mixed or full Japanese 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. There are also small numbers of Europeans and Americans.

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