Palau

Lore & Background

The country was originally settled approximately 1,000 BCE by migrants from Maritime Southeast Asia. Palau was first drawn on a European map by the Bohemian missionary Paul Klein based on a description given by a group of Palauans shipwrecked on the Philippine coast on Samar. The Palau 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 made a part of the Japanese-ruled South Seas Mandate by the League of Nations. During World War II, skirmishes including the major Battle of Peleliu were fought between American and Japanese troops as part of the Mariana and Palau Islands campaign. Along with other Pacific Islands, Palau was made a part of the United States–governed Trust Territory of the Pacific Islands in 1947. Having voted in a referendum against joining the Federated States of Micronesia in 1978, the islands gained full sovereignty in 1994 under a Compact of Free Association with the United States.

In Their Own Story

Morning mist clung to the jagged limestone spines of the Rock Islands as a boat sliced through glassy lagoons. An elder gestured toward Ngerulmud, the silent capital nestled in the distance, then pointed down into azure depths where golden jellyfish drifted, harmless and ancient—a legacy of millennia in isolation. Here, history wasn't just carved in stone; it pulsed within coral gardens protected by a sacred covenant: take only photos, leave only bubbles. The water's silence spoke louder than any textbook, reminding visitors that this paradise survives solely through the grace of meticulous stewardship.

Reader's Guide

Politically, 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. Palau's economy is based mainly on tourism, subsistence agriculture, and fishing, with a significant portion of gross national product (GNP) derived from foreign aid. The country uses the United States dollar as its official currency. The islands' culture mixes Micronesian, Melanesian, Asian, and Western elements. Ethnic Palauans, 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.

Did You Know?

• 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'.
• Palau led the Micronesia Challenge in 2005, which would conserve 30% of near-shore coastal waters and 20% of forest land of participating countries by 2020.
• Palau became one of the founding members of the Nauru Agreement in 1982.