Part 574

Capital: Koror note: a new capital is being built about 20 km northeast in eastern Babelthuap

Administrative divisions: there are no first-order administrative divisions as defined by the US Government, but there are 16 states: Aimeliik, Airai, Angaur, Kayangel, Koror, Melekeok, Ngaraard, Ngardmau, Ngaremlengui, Ngatpang, Ngchesar, Ngerchelong, Ngiwal, Peleliu, Sonsorol, Tobi

Independence: 1 October 1994 (from the US-administered UN Trusteeship)

National holiday: Constitution Day, 9 July (1979)

Constitution: 1 January 1981

Legal system: based on Trust Territory laws, acts of the legislature, municipal, common, and customary laws

Suffrage: 18 years of age; universal

Executive branch: chief of state and head of government: President Kuniwo NAKAMURA (since 1 January 1993) and Vice President Tommy E. REMENGESAU Jr. (since 1 January 1993) were elected for four-year terms by popular vote; election last held 4 November 1992 (next to be held NA November 1996); results - Kuniwo NAKAMURA 50.7%, Johnson TORIBIONG 49.3% cabinet: Cabinet

Legislative branch: bicameral Parliament (Olbiil Era Kelulau or OEK) Senate: elections last held 4 November 1992 (next to be held NA November 1996); results - percent of vote by party NA; seats - (14 total) number of seats by party NA House of Delegates: elections last held 4 November 1992 (next to be held NA November 1996); results - percent of vote by party NA; seats - (16 total) number of seats by party NA

Judicial branch: Supreme Court; National Court; Court of Common Pleas

Political parties and leaders: Palau Nationalist Party, Polycarp BASILIUS

International organization participation: ESCAP (associate), SPC, SPF, UN, WHO

Diplomatic representation in US: chief of mission: Ambassador (vacant); Charge d'Affaires ad interim Isaac Ngewakl SOALADAOB chancery: 2000 L Street NW, Suite 407, Washington, DC 20036 telephone: (202) 452-6814 FAX: (202) 452-6281

US diplomatic representation: chief of mission: Ambassador (vacant); Charge d'Affaires Richard G. WATKINS embassy: address NA, Koror mailing address: P.O. Box 6028, Republic of Palau 96940 telephone: 488-2920, 2990 FAX: 488-2911

Flag: light blue with a large yellow disk (representing the moon) shifted slightly to the hoist side

Economy -------

Economic overview: The economy consists primarily of subsistence agriculture and fishing. The government is the major employer of the work force, relying heavily on financial assistance from the US. The population, in effect, enjoys a per capita income of $5,000, twice that of the Philippines and much of Micronesia. Long-run prospects for the tourist sector have been greatly bolstered by the expansion of air travel in the Pacific and the rapidly rising prosperity of leading East Asian countries. Reducing budgeted operating expenditures - which have increased 56% from 1989 to 1993 - will be the biggest challenge for the government over the next several years.

GDP: purchasing power parity - $81.8 million (1994 est.) note: GDP numbers reflect US spending

GDP real growth rate: NA%

GDP per capita: $5,000 (1994 est.)

GDP composition by sector: agriculture: NA% industry: NA% services: NA%

Inflation rate (consumer prices): NA%

Labor force: NA by occupation: NA

Unemployment rate: 20% (1986)

Budget: revenues: $17 million expenditures: $57 million, including capital expenditures of $NA (1995 est.)

Industries: tourism, craft items (from shell, wood, pearls), some commercial fishing and agriculture

Industrial production growth rate: NA%

Electricity: capacity: 16,000 kW production: 22 million kWh consumption per capita: 1,540 kWh (1990)