Palau, officially the Republic of Palau, is an island country located in the western Pacific Ocean. The country contains approximately 340 islands, forming the western chain of the Caroline Islands in Micronesia, and has an area of 466 square kilometers. The most populous island is Koror. The capital Ngerulmud is located on the nearby island of Babeldaob, in Melekeok State. Palau shares maritime boundaries with Indonesia, the Philippines, and the Federated States of Micronesia.
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 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 descended from Japanese and Filipino settlers. The country's 2 official languages are Palauan (a member of the wider Sunda-Sulawesi language group) and English, with Japanese, Sonsorolese, and Tobian recognized as regional languages.
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