Palau

3.1. Early settlement

Palau was originally settled between the 3rd and 2nd millennia BCE, approximately 3,000 to 4,000 years ago. Archaeological evidence suggests these first inhabitants were likely migrants from the Philippines or Indonesia, part of the broader Austronesian expansion. Early Palauan society developed complex social structures, including matrilineal kinship systems and chiefly hierarchies, and adapted to the diverse marine and terrestrial environments of the archipelago.

Sonsorol, one of the Southwest Islands of Palau, was possibly the first island group sighted by Europeans in 1522. The Spanish ship Trinidad, flagship of Ferdinand Magellan's circumnavigation voyage, spotted two small islands around the 5th parallel north and named them "San Juan". However, more sustained European contact began later. In December 1696, a group of Palauans were shipwrecked on the Philippine island of Samar near Guiuan. They were interviewed by the Bohemian Jesuit missionary Paul Klein, who, based on their descriptions and a map they created using pebbles on a beach, produced the first European map of the Palau area. Klein sent this map and a letter detailing his findings about the islands and their culture to the Jesuit Superior General in June 1697.

3.2. European contact and colonial rule

Following Paul Klein's report, European interest in the "new" islands grew. This led to several attempts by various European powers to establish contact and later, control. The impact of these contacts was profound, introducing new diseases that drastically reduced the indigenous population, new economic systems, and foreign political domination that reshaped Palauan society.

3.2.1. Spanish colonial era (1574-1899)

Klein's map and letter spurred further European curiosity. Another letter by Father Andrés Serrano, largely echoing Klein's information, was sent to Europe in 1705. These communications resulted in three unsuccessful Jesuit expeditions from the Spanish Philippines to Palau in 1700, 1708, and 1709. The first confirmed European visit to the main Palauan islands was by a Jesuit expedition led by Francisco Padilla on November 30, 1710. This mission ended tragically when the mother ship, Santísima Trinidad, was driven to Mindanao by a storm, stranding two priests, Jacques Du Beron and Joseph Cortyl, on the coast of Sonsorol. A rescue ship sent from Guam in 1711 also capsized, leading to the deaths of three more Jesuit priests. These early failures led to Palau being called Islas Encantadas (Enchanted Islands) by the Spanish.

British traders became regular visitors to Palau in the 18th century. A notable event was the 1783 shipwreck of the East India Company packet ship Antelope off Ulong Island. This incident led to Prince Lee Boo, a Palauan royal, visiting London, which further increased European awareness of the islands. Spanish influence expanded in the 19th century, and in 1885, Palau was formally incorporated into the Spanish East Indies, administered from the Philippines. Spanish administrative policies were implemented, and missionary activities, primarily Catholic, intensified. During this period, Palau, under the name Palaos, was included in the Malolos Congress of 1898 in the Philippines. This revolutionary congress, seeking independence from Spain, recognized Palau and even supported its right to self-determination, appointing a Palauan representative. This was unique for the Caroline Islands.

The socio-cultural effects of Spanish rule included the introduction of Christianity, new forms of governance, and integration, however limited, into a wider colonial economic network. However, direct Spanish control remained relatively light for much of this period compared to other colonies.

3.2.2. German colonial era (1899-1914)

Following Spain's defeat in the Spanish-American War of 1898 and its diminishing colonial power, Germany purchased Palau, along with the rest of the Caroline Islands (excluding Guam), from Spain under the German-Spanish Treaty (1899). The islands were administered as part of German New Guinea.

The German colonial administration focused on economic exploitation. Key industries developed by the Germans included phosphate mining, particularly on Angaur Island, and copra production from coconuts. They also encouraged the cultivation of tapioca. While Germany invested in some infrastructure and resource extraction, the benefits largely accrued to German commercial interests, with limited German personnel stationed in the islands. Palauan society experienced changes through the imposition of German labor policies and the further integration of the islands into a global commodity market. However, direct German administrative presence remained relatively small.

3.3. Japanese administration (1914-1945)

During World War I, Japan, as part of the Allied Powers through the Anglo-Japanese Alliance, declared war on Germany and seized its Micronesian territories, including Palau, in October 1914. This marked the beginning of a three-decade Japanese rule that profoundly transformed Palauan society, economy, and landscape.

3.3.2. World War II and impact

Palau's strategic location made it a key Japanese military base in the Pacific. During World War II, it served as a staging area for Japan's invasion of the Philippines in 1941-1942. As the war turned against Japan, Palau became a major battleground.

In 1944, as part of the Mariana and Palau Islands campaign, U.S. forces launched an offensive to capture the islands. The most significant engagement was the Battle of Peleliu (September-November 1944), an exceptionally bloody conflict resulting in over 2,000 American and 10,000 Japanese deaths. The nearby Battle of Angaur also saw fierce fighting. While indigenous Palauan civilians were largely evacuated from Peleliu before the battle, the war had devastating effects on the islands' infrastructure and environment. Some Palauans were conscripted by the Japanese military as laborers or auxiliaries. The intense fighting and subsequent American occupation marked the end of Japanese rule.

3.4. United States Trust Territory (1947-1994)

Following Japan's surrender in 1945, Palau came under United States control. In 1947, the United Nations formally established the Trust Territory of the Pacific Islands (TTPI), designating the U.S. as the administering authority. Palau was one of six districts within the TTPI.

The post-war period involved reconstruction and a gradual shift towards self-governance. Initial U.S. policy was sometimes criticized as a "zoo policy," aiming to preserve traditional ways of life with limited development, but this shifted in the 1960s towards more active investment in education, healthcare, and infrastructure, often influenced by Cold War strategic considerations. The U.S. introduced democratic political institutions, including a local legislature, the Palau District Legislature (Olbiil Era Kelulau). However, Palau's economy became heavily dependent on U.S. aid. During this period, Palauans began to articulate a desire for greater autonomy and eventually independence.

3.5. Independence

In 1978, when a constitution for a federated Micronesian state was proposed, Palau, along with the Marshall Islands, voted against joining the Federated States of Micronesia (FSM), opting instead for separate political status. Palauans approved their own constitution in a 1979 referendum, which notably included provisions for a nuclear-free status. The Republic of Palau was declared on January 1, 1981, achieving self-government.

Negotiations for a Compact of Free Association (COFA) with the United States began. This agreement would grant Palau full sovereignty while the U.S. would retain responsibility for defense and provide substantial financial assistance. The nuclear-free clause in Palau's constitution became a point of contention, as it conflicted with U.S. strategic interests, which desired access for nuclear-capable vessels. This led to a series of referendums (eight in total) on the COFA, as the initial constitutional requirement for overriding the nuclear-free clause for the Compact was a 75% majority, which proved difficult to achieve.

In 1992, a constitutional amendment was passed, lowering the threshold for approving the COFA in relation to the nuclear provisions to a simple majority. Subsequently, in a referendum held in November 1993, the COFA was approved. Palau achieved full independence on October 1, 1994, when the COFA entered into force. This also marked the formal dissolution of the Trust Territory of the Pacific Islands, with Palau being its last component to gain independence, recognized by United Nations Security Council Resolution 956. Kuniwo Nakamura, who was of Japanese descent, was president at the time of independence.

Post-independence, Palau has focused on nation-building, economic development, and environmental conservation. Key initiatives include leading the Micronesia Challenge in 2005 to conserve regional biodiversity, establishing the world's first national shark sanctuary in 2009, and having its Rock Islands Southern Lagoon declared a UNESCO World Heritage Site in 2012. In 2015, Palau became a member of the Climate Vulnerable Forum and officially protected 80% of its water resources. The "Palau Pledge," an eco-promise stamped in visitors' passports, was introduced in 2017. Palau briefly withdrew from the Pacific Islands Forum in 2021 over a leadership dispute but later agreed to rejoin. The nation continues to navigate its relationship with the U.S. under the COFA, balancing economic reliance with sovereign aspirations.

4.1. Topography and main islands

Palau consists of approximately 340 islands, of which only about nine are inhabited. The main island group includes:

• Babeldaob: The largest island in Palau and the second largest in Micronesia (after Guam). It is volcanic in origin and features rolling hills, forests, and rivers. The nation's capital, Ngerulmud, is located in Melekeok State on Babeldaob. The Roman Tmetuchl International Airport is also on this island, in Airai State.
• Koror: Located just south of Babeldaob, to which it is connected by the Koror-Babeldaob Bridge. Koror Island, along with several smaller adjacent islands (including Ngerekebesang and Malakal Island), forms Koror State, which is home to the country's most populous city, Koror City, the former capital and current commercial center.
• Peleliu: A coral island south of Koror, famous as the site of a major World War II battle.
• Angaur: Another coral island south of Peleliu, also historically significant for phosphate mining and World War II.
• Rock Islands: Officially known as Chelbacheb, these are a group of over 200 uninhabited limestone and coral uprises, many shaped like mushrooms, located between Koror and Peleliu. They are renowned for their stunning beauty, unique ecosystems, and are a UNESCO World Heritage Site.
• Kayangel: A coral atoll located north of Babeldaob.
• The Southwest Islands: A remote group of six small islands, including Sonsorol and Tobi, located about 375 mile southwest of the main island group. These islands form the states of Sonsorol and Hatohobei.

Most of the islands are situated within a single barrier reef system, but Kayangel is a true atoll, and the Southwest Islands are distant oceanic islands.

4.2. Climate

Palau has a tropical rainforest climate (Köppen climate classification: Af).

• Temperature: The annual mean temperature is 82.4 °F ^{(28 °C)} (82 °F), with very little seasonal variation.
• Rainfall: Rainfall is heavy throughout the year, averaging 0.1 K in ^{(3.80 K mm)}. The wettest months are typically between June/July and October, though significant rainfall can occur in any month.
• Humidity: Average humidity is high, around 82%.
• Typhoons: Palau lies on the edge of the Pacific typhoon belt. While tropical disturbances frequently develop near Palau, direct hits by significant tropical cyclones are relatively rare. Notable typhoons that have impacted Palau include Typhoon Mike (1990), Typhoon Bopha (2012), and Typhoon Haiyan (2013).

4.3. Environment

Palau has a strong history of environmental conservation and is recognized globally for its efforts to protect its rich biodiversity and unique ecosystems. This commitment is evident in its extensive protected areas and high forest cover, as illustrated by various visual aids throughout this section. However, it also faces significant environmental challenges, many of which are exacerbated by its vulnerability as a small island developing state.

4.3.1. Biodiversity and conservation efforts

Palau is part of the Palau tropical moist forests terrestrial ecoregion and is a global hotspot for biodiversity. Its marine environment is particularly rich, with diverse coral reefs, numerous fish species, marine mammals, and several endemic species. Terrestrial biodiversity includes unique flora and fauna adapted to its island ecosystems. The Ngerukewid Islands Wildlife Preserve, established in 1956, is one of the oldest protected areas in the Pacific.

In 2005, Palau initiated the Micronesia Challenge, a commitment by several Micronesian governments to conserve at least 30% of their near-shore marine resources and 20% of their terrestrial resources by 2020. Palau has actively worked towards these goals, establishing numerous protected areas. The country had a 2019 Forest Landscape Integrity Index mean score of 8.09/10, ranking it 27th globally out of 172 countries, indicating a high degree of forest intactness.

4.3.2. Marine protection and shark sanctuary

Palau has been a pioneer in marine conservation. In 2009, it established the world's first national shark sanctuary, banning all commercial shark fishing within its 232 K mile^{2 (600.00 K km2)} Exclusive Economic Zone (EEZ). This move was aimed at protecting shark populations vital for marine ecosystem health and the local tourism industry. In 2015, Palau went further by designating 80% of its EEZ (approximately 193 K mile^{2 (500.00 K km2)}) as a fully protected marine reserve, one of the largest in the world, where no fishing or mining is allowed. This effort was recognized with the Future Policy Award from the World Future Council in 2012. The economic benefits of these conservation measures, particularly through tourism, have been noted.

5.1. Government structure

Palau's government is composed of three branches:

• Executive Branch: The President of Palau is both the head of state and head of government, elected by popular vote for a four-year term. The President is assisted by a Vice President and a cabinet of ministers. Surangel Whipps Jr. assumed office as President in January 2021.
• Legislative Branch: The Palau National Congress (Olbiil Era Kelulau_{Olbiil Era Kelulau}^Palauan) is a bicameral body consisting of:
  • The Senate, which has 13 members elected nationwide.
  • The House of Delegates, which has 16 members, one elected from each of Palau's sixteen states.

  All legislators serve four-year terms.

  • Judicial Branch: The judiciary is independent and comprises the Supreme Court (with trial and appellate divisions), the Court of Common Pleas, and the Land Court. Judges are appointed by the President with the approval of the Palau National Congress and serve for life.

  A Council of Chiefs, composed of the highest traditional leaders from each of the sixteen states, advises the President on matters related to traditional laws and customs. This council plays an important role in linking modern governance with Palau's deeply rooted traditional systems.

5.2. Administrative divisions

Palau is divided into sixteen states. Until 1984, these were referred to as municipalities. Each state has its own constitution, elected governor, and legislature. The states are:

Flag	State	Capital	Area (km2)	Population (2020 Census)	Notes
	Aimeliik	Mongami	44	363	In the southwestern part of Babeldaob Island
	Airai	Ngetkib	59	2,529	In the southeastern part of Babeldaob Island; location of the international airport
	Angaur	Ngaramasch	8.06	114	Angaur Island, 12 km south of Peleliu
	Hatohobei	Hatohobei	0.9	39	Comprises Tobi Island and (uninhabited) Helen Reef; one of the Southwest Islands
	Kayangel	Kayangel	1.7	41	Comprises the islands of Kayangel Atoll
	Koror	Koror City	60.52	11,199	Comprises Koror, Ngerekebesang, and Malakal Islands, plus the Rock Islands (Chelbacheb) and Eil Malk
	Melekeok	Ngerulmud	26	318	On the eastern side of Babeldaob Island; location of the national capital
	Ngaraard	Ulimang	34	396	At the northern end of Babeldaob Island
	Ngarchelong	Mengellang	11.2	384	At the northern end of Babeldaob Island
	Ngardmau	Urdmang	34	238	On the western side of Babeldaob Island; location of Mount Ngerchelchuus
	Ngatpang	Ngatpang	33	289	On the western side of Babeldaob Island
	Ngchesar	Ngersuul	43	319	On the eastern side of Babeldaob Island
	Ngaremlengui	Imeong	68	349	On the western side of Babeldaob Island
	Ngiwal	Ngerkeai	17	312	On the eastern side of Babeldaob Island
	Peleliu	Kloulklubed	22.3	470	Comprises Peleliu Island and some islets to its north
	Sonsorol	Dongosaru	3.1	53	Comprises Sonsorol, Fanna, Pulo Anna, and Merir Islands; one of the Southwest Islands

The uninhabited Rock Islands are traditionally part of Koror State.

5.3. Defense and security

Palau does not maintain its own military. Under the Compact of Free Association (COFA) with the United States, the U.S. is responsible for Palau's defense and security for 50 years. This agreement grants the U.S. military access to Palauan territory. The U.S. Navy presence is minimal, primarily consisting of a small contingent of Seabees (construction engineers). The United States Coast Guard conducts patrols in Palau's national waters.

The U.S. government has agreed to construct a large United States Air Force high-frequency over-the-horizon radar system in Palau, costing over 100.00 M USD. This facility is expected to be operational by 2026 and reflects Palau's growing strategic importance in the Indo-Pacific region.

5.4. Maritime law enforcement

Palau's Division of Marine Law Enforcement is responsible for patrolling the nation's extensive 230.00 K mile² Exclusive Economic Zone (EEZ). They operate patrol boats, including the long-range vessels Remeliik II and Kedam (donated by Australia and Japan respectively), to combat illegal fishing, poaching, and other maritime crimes. Smaller vessels are used for littoral operations. These forces are based in Koror. Maritime surveillance is a critical component of protecting Palau's vast marine resources and upholding its conservation commitments.

5.5. Political economy and sovereignty issues

Palau's political system and its economy are deeply intertwined, heavily influenced by its status as a small island developing state and its relationship with the United States under the COFA. While Palau has achieved political independence and established democratic institutions, its economic self-sufficiency remains a significant challenge.

The country relies heavily on international aid, particularly from the U.S. through the COFA, which provides substantial financial assistance. This aid underpins public sector employment and government services. Additional aid comes from other partners like Japan and Taiwan. This dependence raises questions about long-term economic sustainability and the extent of Palau's sovereignty. While the COFA guarantees Palau's self-governance, the reliance on U.S. funding and defense can be seen as a constraint on full autonomy.

Efforts to diversify the economy beyond tourism and aid face obstacles such as limited natural resources (other than marine), a small domestic market, and remoteness. The transition from colonial rule and trusteeship to an independent state has brought both successes in democratic institution-building and persistent challenges in achieving genuine economic independence and reducing vulnerability to external economic shocks and geopolitical influences. The social impact of aid dependence and the distribution of economic benefits are ongoing concerns from a social justice perspective.

6.1. Overview of foreign policy

Palau's foreign policy prioritizes strong relationships with its Pacific neighbors, the United States, and key Asian partners. It actively participates in regional organizations like the Pacific Islands Forum (though it briefly withdrew in 2021, it has since re-engaged). Key foreign policy objectives include securing development assistance, promoting sustainable development, advocating for action on climate change, protecting its maritime resources, and maintaining its sovereignty. Palau has been a vocal advocate for environmental conservation on the international stage.

6.2. Relations with the United States

The relationship with the United States is paramount, governed by the Compact of Free Association (COFA). The COFA provides Palau with substantial financial assistance, defense guarantees (with the U.S. responsible for Palau's security), and access for its citizens to certain U.S. federal programs and employment opportunities. In return, the U.S. has strategic denial rights in Palau's territory and waters. The U.S. maintains an embassy in Koror. While the COFA has been crucial for Palau's economic stability and security, discussions around its renewal and long-term implications for Palauan sovereignty and self-reliance are ongoing. Concerns about the social and environmental impacts of U.S. military presence and projects are also part of this dynamic relationship.

6.3. Relations with Japan

Palau maintains close and friendly ties with Japan, reflecting historical connections from the Japanese mandate period (1914-1945) and substantial post-independence development assistance. Japan is a major aid donor, particularly in infrastructure projects such as the Koror-Babeldaob Bridge (rebuilt with Japanese assistance and named the Japan-Palau Friendship Bridge). Cultural exchange, tourism (many Japanese tourists visit Palau), and high-level visits are common. In 2015, then-Emperor Akihito and Empress Michiko visited Peleliu to commemorate the 70th anniversary of the end of World War II and honor war dead, a visit that underscored the complex historical ties.

6.4. Relations with Taiwan (Republic of China)

Palau is one of the few countries that maintain full diplomatic relations with the Republic of China (ROC), commonly known as Taiwan, instead of the People's Republic of China. This relationship is characterized by significant economic cooperation and development assistance from Taiwan to Palau. Taiwan provides support for infrastructure, agriculture, healthcare, and education initiatives in Palau. Both nations offer mutual support in international forums, with Palau often advocating for Taiwan's participation in international organizations. Taiwan has also provided financial support for Palau to maintain its presence at international events, including the United Nations and UN Climate Change Conferences.

6.5. Relations with other countries and international organizations

Palau is a member of the United Nations (since 1994) and various other international and regional organizations, including the Pacific Islands Forum, the SPREP, and the Nauru Agreement for fisheries management. It has observer status in the ASEAN, with support from countries like the Philippines.

Palau has engaged on specific international issues, such as agreeing in 2009 to resettle a group of Uyghur detainees from the U.S. Guantanamo Bay detention camp. Six of the seventeen individuals were eventually transferred to Palau. This decision was reportedly accompanied by an aid package from the United States, although official statements indicated the aid was unrelated.

Palau maintains diplomatic relations with numerous other countries, including Australia, New Zealand, and fellow Pacific Island nations.

6.6. Nuclear-free stance

Palau's constitution, adopted in 1981, makes it the world's first nation with a nuclear-free constitution. Article XIII, Section 6, bans the testing, storage, use, or disposal of nuclear, chemical, or biological weapons in Palauan territory without the approval of 75% of votes cast in a referendum. This provision significantly complicated and delayed the ratification of the Compact of Free Association with the U.S., as the U.S. sought rights for its nuclear-capable vessels and aircraft to transit and operate within Palau. After several referendums and a constitutional amendment to ease the approval requirements specifically for the Compact, the COFA was eventually ratified. Palau remains committed to a nuclear-free Pacific and signed the Treaty on the Prohibition of Nuclear Weapons in 2017.

7.1. Main industries

The key sectors of Palau's economy are tourism, public administration, agriculture, and fisheries. These industries are crucial for employment and national income, though their socio-environmental impacts are carefully considered in line with Palau's strong conservation ethos.

7.1.1. Tourism

Tourism is the cornerstone of Palau's economy, contributing significantly to its GDP and employment. The country is renowned for its pristine marine environment, making it a premier destination for scuba diving and snorkeling. Attractions include vibrant coral reefs, diverse marine life (including sharks, manta rays, and numerous fish species), the unique Jellyfish Lake, and World War II shipwrecks. Palau actively promotes ecotourism and sustainable tourism practices. In 2017, it launched the "Palau Pledge," requiring visitors to sign a pledge in their passports to act in an ecologically and culturally responsible way during their stay. The Ol'au Palau program, launched in 2022, further encourages responsible tourism by rewarding visitors for sustainable behavior. Challenges for the tourism sector include managing environmental impacts, ensuring equitable benefit distribution, and maintaining infrastructure. The COVID-19 pandemic severely impacted tourist arrivals, highlighting the economy's vulnerability.

7.2. Trade and investment

Palau's main imports include food, fuel, machinery, and manufactured goods. Exports are limited, primarily consisting of fish (mainly tuna) and some agricultural products like copra. Major trading partners include the United States, Japan, Taiwan, and Singapore.
The foreign investment climate is focused on sustainable development, particularly in tourism and related sectors.
Palau operates an international ship registry. A 2020 study noted that while Palau's registry represents a very small percentage of the world's commercial fleet, it had a disproportionately high percentage of "last-voyage flags" in 2019, suggesting some shipping companies might use the registry to evade end-of-life responsibilities for ship decommissioning, which can have negative environmental and labor implications.

7.3. Finance, currency, and taxation

Palau's public finances are heavily reliant on funding from the Compact of Free Association with the United States. Other aid comes from partners like Japan and Taiwan. The official currency of Palau is the United States dollar.

The taxation system includes:

• Income Tax: Progressive rates of 9.3%, 15%, and 19.6%.
• Corporate Tax: A flat rate of 4%.
• Palau Goods and Services Tax (PGST): Introduced on January 1, 2023, this is a broad-based tax of 10% applied to most goods and services sold or consumed in Palau.

There are no property taxes.

In 2006, the Pacific Savings Bank, a local institution, declared bankruptcy. Depositors, particularly those with smaller accounts, were compensated using funds from a loan balance provided by the Taiwanese government.

7.4. Transportation

Transportation infrastructure in Palau facilitates movement within the archipelago and connects the nation internationally, primarily through air and sea.

7.4.2. International transportation

• Air Travel: Palau International Airport (officially Roman Tmetuchl International Airport, IATA: ROR), located on Babeldaob island, is the main international gateway.
  • Scheduled international flights connect Palau with Guam, Manila (Philippines), Taipei (Taiwan), Incheon (South Korea), and Brisbane (Australia, service started May 2024).
  • Airlines serving Palau include United Airlines, Korean Air, China Airlines, and Nauru Airlines. Historically, other airlines like Palau Micronesia Air, Asian Spirit, and Pacific Flier provided services but have since ceased operations.
• Sea Travel: Malakal Harbor on Malakal Island (near Koror) is the main port, handling freight, military vessels, and occasional cruise ships.

7.5. Information and communications technology

Telecommunications infrastructure in Palau includes landline telephone services, mobile networks, and internet access. Internet penetration has been growing, supported by improvements in submarine cable connectivity, such as the connection to the SEA-US cable system. Broadcasting services include local radio stations (e.g., Eco Paradise FM) and television (e.g., Inter Cable Television - ICT), which may carry international channels like NHK and CNN. The country code top-level domain (ccTLD) for Palau is .pw.

8.1. Population trends and distribution

The population of Palau was approximately 17,614 according to the 2020 census, a slight decrease from 17,661 in the 2015 census and 19,907 in the 2005 census. Estimates for 2023 suggest a population around 21,779.
The majority of the population resides in Koror State, particularly in Koror City, the country's main urban and commercial center. The capital, Ngerulmud, on the larger but less populated island of Babeldaob, has a small residential population. Population density is relatively low overall but high in Koror. Like many Pacific island nations, Palau experiences out-migration, particularly of younger individuals seeking education and employment opportunities abroad, primarily in the United States and its territories due to the Compact of Free Association.

8.2. Ethnic groups

The primary ethnic group is indigenous Palauans, who constitute about 73% of the population. Palauans are of mixed Micronesian, Melanesian, and Austronesian descent.
Other significant ethnic groups include:

• Filipinos: The largest non-Palauan ethnic group, forming a substantial part of the workforce. Their presence dates back to the Spanish colonial period and increased significantly in recent decades.
• Other Asians: Including Chinese, Koreans, Bangladeshis, and Nepalese, many of whom came as contract workers.
• Palauans of Japanese descent: A notable minority, resulting from intermarriage during the Japanese colonial era (1914-1945). Some estimates suggest up to 25% of the population may have some Japanese ancestry.
• Europeans and Americans: A small number reside in Palau, often involved in business, diplomacy, or technical assistance.

8.3. Languages

The official languages of Palau are Palauan and English.

• Palauan: An Austronesian language (possibly belonging to the Sunda-Sulawesi branch), it is the most widely spoken language and the mother tongue of the majority of the indigenous population.
• English: Widely used in government, education, and commerce. It is a core subject in schools, and many Palauans are bilingual. A local dialect influenced by Philippine English is also developing.

Several regional languages are recognized in specific states:

• Sonsorolese: Official in Sonsorol State.
• Tobian: Official in Hatohobei State. Both Sonsorolese and Tobian are closely related Trukic languages.
• Japanese: Recognized as an official language in Angaur State. It is also spoken by some older Palauans who lived through the Japanese administration.

Tagalog (Filipino) is widely spoken due to the large Filipino community, though it is not an official language.

8.4. Religion

Christianity is the predominant religion in Palau, a legacy of Spanish, German, and American missionary activities.

• Roman Catholicism: The largest single denomination, accounting for approximately 45.3% - 49.4% of the population (estimates vary by source and year).
• Protestant Denominations: Collectively form a significant group (around 25.9% - 34.9%), including various evangelical churches.
• Seventh-day Adventists: Comprise about 5% - 6.9% of the population.
• Modekngei: An indigenous syncretic religion that emerged in the early 20th century, combining elements of ancient Palauan beliefs and Christianity. It is followed by about 5.1% - 8.8% of the population.
• Islam: A small Muslim community exists, primarily composed of foreign workers from countries like Bangladesh, and also includes the Uyghurs resettled from Guantanamo Bay. Muslims account for about 3% - 4.9% of the population.
• The Church of Jesus Christ of Latter-day Saints: Has a presence, accounting for about 0.9% - 1.5%.
• Other Beliefs: Include traditional Palauan religion and other faiths. Mahayana Buddhism and Shinto were introduced during the Japanese era, primarily among Japanese settlers; while Shinto practices largely ceased after WWII, some Japanese descendants may have continued Buddhist traditions or converted to Christianity.

Freedom of religion is constitutionally protected and generally respected in practice.

11.1. Traditional Palauan society and customs

Palauan society traditionally revolves around a complex system of clans, chieftainships, and land tenure, all deeply influenced by its matrilineal structure.

11.2. Cuisine

Palauan cuisine is based on locally sourced ingredients from the land and sea.

• Staples: Taro (kukau, brak_{kukau, brak (taro)}^Palauan) is a primary staple, prepared in many ways. Other important starches include cassava (diokang_{diokang (cassava)}^Palauan), yam, and sweet potato.
• Seafood: Fish is abundant and a central part of the diet. Other seafood includes crab, shellfish, and sea cucumber.
• Meat: Pork and chicken are common. A controversial traditional delicacy is fruit bat soup (sop Pteropus_{sop Pteropus (fruit bat soup)}^Palauan), where a whole fruit bat is cooked in coconut milk.
• Fruits and Vegetables: Tropical fruits like coconut, banana, papaya, and breadfruit are widely available.
• Beverages: Traditional drinks include those made from fermented coconut sap (a type of palm wine) and a non-alcoholic drink made from the roots of the kava plant (though kava is less central than in some other Pacific cultures). Chewing areca nut (betel nut) with lime and piper leaf is a common social custom.
• Influences: Palauan cuisine has been influenced by Japanese, American, and Filipino food cultures due to historical connections and migration. Rice, soy sauce, and canned goods are now common. Tama is a dessert developed in Palau.

11.3. Sports

Several sports are popular in Palau, with participation in both local and international competitions.

11.4. Media and arts

Palau's media landscape includes print, radio, and television, while its arts encompass both traditional forms and contemporary expressions.

• Media:
  • Newspapers: Several local newspapers serve the community, including Tia Belau (established 1992) and Island Times. Historically, Rengel Belau (1983-1985) was also published.
  • Radio: Radio is an important medium. Eco Paradise FM was established with cooperation from Japan's TFM and Japan Airlines, and it broadcasts some TFM programs.
  • Television: Inter Cable Television (ICT) provides cable TV services, including local programming and international channels like NHK and CNN.
• Arts:
  • Traditional Arts: Palauan traditional arts are renowned, particularly wood carving. Elaborately carved storyboards (itabori_{itabori (storyboards)}^Palauan) depicting historical events and legends are a distinctive art form. Weaving of pandanus leaves and other fibers into mats, baskets, and sails is also practiced. Traditional music and dance are integral to cultural ceremonies and storytelling.
  • Contemporary Arts: Modern Palauan artists continue these traditions and also explore new forms of expression.

  Palau has been the setting for several international media productions, including the reality TV show Survivor: Palau and the Korean drama The Legend of the Blue Sea.

11.5. World Heritage sites

Palau has one site inscribed on the UNESCO World Heritage List:

• Rock Islands Southern Lagoon: Inscribed in 2012 as a mixed (natural and cultural) heritage site. It comprises 445 uninhabited limestone islands of volcanic origin, displaying unique mushroom-like shapes resulting from erosion. The site is known for its exceptional marine biodiversity, numerous marine lakes (including the famous Jellyfish Lake), and evidence of human occupation spanning nearly three millennia, including rock art and village remnants.

Palau also has several sites on UNESCO's Tentative List, indicating potential for future nomination:

• Ouballang ra Ngebedech (Ngebedech Terraces)
• Imeong Conservation Area
• Yapease Quarry Sites
• Tet el Bad (Stone Coffin)

11.6. Public holidays

Palau observes a number of public holidays, reflecting its history, culture, and civic life. These include:

Specific dates for some holidays may vary, and additional local or state holidays may also be observed.