Palau

THE REPUBLIC OF PALAU, which is composed of 340 islands in the western Pacific Ocean, is both politically and economically stable with a high standard of living. Only nine islands are inhabited: Kayangel, Babeldaob, Koror, Peleliu, Angaur, Sonsorol, Pulo Anna, Hatohobei, and Helen Reef. Formerly under the administration of the United States as part of the United Nations Trust Territory of the Pacific, Palau was granted independence in 1994. As part of the compact with the United States, Palau continues to receive aid until 2009, when new terms may be negotiated. Since this financial assistance remains crucial to the island economy, the government has created a trust fund to ensure that the Palauan standard of living will not be seriously affected when the compact expires. Palau also receives foreign aid from Japan and Taiwan.

With a per capita annual income of $9,000, Palau is an upper-middle-income nation and one of the wealthiest nations in the Pacific region. The economy is heavily [Page 807]dependent on subsistence agriculture and fishing, but tourism is the major revenue source for the islands. The government is the nation's biggest employer. The service industries contribute 80 percent of the Gross Domestic Project. Unemployment stands at 2.3 percent. Even though Palau is one of the most highly developed countries in the Oceanic region, data on major social indicators are often unavailable. This makes it difficult to accurately access poverty on Palau; however, it is clear that the standard of living on the islands is relatively high.

Over the past decades, life expectancy among the Palauan population of 20,303 has steadily improved. Between 1980 and 2005, life expectancy for males rose from 56 to 66.98 years. At the same time, the projected life span for females increased dramatically from 59 to 73.48 years. The median age is 31.43 years. Over 26 percent of the population are under the age of 14, and 4.6 percent are at least 65 years of age. While most Palauans have access to safe drinking water, 21 percent do not. Virtually all of the islands' residents have access to improved sanitation. Healthcare is widely accessible. There are 110 physicians on the island, and 95 to 100 percent of islanders are able to afford essential drugs.

Infant mortality on Palau is relatively low. According to government statistics, between 1990 and 2003, infant mortality fell from 34.5 deaths per 1,000 live births to 6.4 deaths per 1,000 live births. At a mortality rate of 12.99 deaths per 1,000 live births, female infants are hardier than males at 16.6 deaths per 1,000. Between 1990 and 2003, the mortality rate of children under the age of 5 declined from 34 to 28 deaths per 1,000. Nine percent of all infants born on the islands are underweight. Only one percent of children between the ages of birth and 23 months have not been immunized against measles, DPT3, polio, and tuberculosis.

According to estimates for 2005, the total fertility rate on the islands is 2.46 children per woman. About 47 percent of all Palauan women use some method of contraception. Trained medical staff attend all births on Palau.

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