Forgotten World (150): Palau
The tiny northern Pacific nation of Palau – which only became independent of United States administration in 1994 – consists of more than 200 volcanic and coral islands, many of them surrounded by a single barrier reef, and its tropical waters are home to an abundance of marine life, making the pace a paradise for divers.
The population of just 20,000 relies on financial aid from the USA, provided under a Compact of Free Association which gives the US responsibility for Palau’s defence and the right to maintain military bases there. Direct aid is set to end in 2009.
Tourism is low key, though growing in economic importance. Many visitors come from Taiwan, with which Palau has diplomatic ties. Taiwanese aid boosts the economy.