Palau
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 independent status 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 their independence.
There are currently no known threats to travelers or expatriate personnel in Palau, which became a constitutional democracy in free association with the United States on October 1, 1994.
The latest Congressional elections were held on 7 November 2000. Former President Nakamura was not eligible to stand again for the Presidency, having served two terms and Tommy E. Remengesau, former Vice President and Minister of Administration was elected President. Sandra Pierantozzi was elected as Vice President.
The Palauan economy has good potential for sustained growth. Palau has suffered less than its neighbors from the effects of the Asian economic downturn. Tourism, the main source of income for Palau, declined in 1998-99, but has since begun to improve. While tourism infrastructure development, including a new hotel, remains a priority of the Government, so too is the need to retain a balance between tourist numbers and the maintenance of Palau's renowned pristine environment. In order to achieve this balance, promotion has been geared to high-income, low-volume tourism.
With a per capita GDP estimated at over US$7,000 in 2001, Palau has one of the highest standards of living of the Pacific island countries. Wealth and development are, however, very unevenly spread throughout the country.
