Three Gorges Dam
EnergyThe world's largest hydropower station by installed capacity, at 22.5 GW, and the main flood-control structure on the Yangtze.
After three decades as part of the UN Trust Territory of the Pacific under US administration, this westernmost cluster of the Caroline Islands opted for independence in 1978 rather than join the Federated States of Micronesia. A Compact of Free Association with the US was approved in 1986 but not ratified until 1993. It entered into force the following year when the islands gained independence.
The National Infrastructure Index maps the physical assets national life runs on — power stations and grids, water systems, ports, railways and airports, data networks, payment systems and launch sites. Each asset is placed in a Strategic Infrastructure capability group, so it can be read against the ratings in the National Capability index above.
Assets are chosen for how much of the economy and state depends on them and how hard they would be to replace. Each card records what the asset is, the category it belongs to, what it does and where it is.
Example assets. These twenty cards are modelled on China's most critical infrastructure and show on every nation page until each nation's own assets are mapped.
The world's largest hydropower station by installed capacity, at 22.5 GW, and the main flood-control structure on the Yangtze.
A 16 GW dam on the Jinsha River, built around sixteen 1 GW turbines, the largest single units in service.
A ±1,100 kV direct-current line carrying 12 GW more than 3,000 km from Xinjiang's power bases to the eastern grid.
China's first large commercial nuclear plant, in service since 1994, with much of its output sold to Hong Kong.
A canal carrying Yangtze basin water more than 1,400 km north from the Danjiangkou Reservoir to Beijing and Tianjin.
The 1,318 km trunk line between the two largest cities, opened in 2011 and one of the busiest high-speed routes in the world.
The world's busiest container port since 2010, including the automated Yangshan deep-water terminals.
The world's largest port by cargo tonnage, handling iron ore, crude oil and coal for the eastern industrial belt.
The capital's second international hub, opened in 2019 around one of the largest single terminal buildings in the world.
A 55 km bridge and undersea tunnel system linking the western and eastern shores of the Pearl River Delta, opened in 2018.
The 1,956 km line from Xining to Lhasa, crossing the Tanggula Pass at 5,072 m, the highest railway in the world.
One of eight national data centre hubs under the East Data, West Computing programme, hosting major cloud providers.
A 2,000 km quantum key distribution trunk line through Jinan and Hefei, completed in 2017 for secure government and bank links.
CIPS clears and settles cross-border payments in renminbi, launched in 2015 to extend the currency's international reach.
The coastal launch site for Long March 5 heavy-lift rockets, used for the Tiangong station modules and lunar and Mars missions.
China's first launch site, founded in 1958 in the Gobi Desert, and the base for every crewed Shenzhou mission.
The national satellite navigation system, providing global positioning and timing since 2020 from its Beijing control segment.
The world's largest known rare-earth deposit and the core of China's rare-earth mining and refining supply chain.
A weir and channel system built around 256 BC that still irrigates much of the Chengdu Plain's farmland.
China's leading maker of 3D NAND flash memory, central to the drive for a domestic semiconductor supply.
The National Development Index tracks the events that move a nation's capability — policy decisions, technological milestones, economic turns and external shocks — and places each one on the record with the date it happened and what followed from it. It is the narrative counterpart to the indices: where a rating says where Palau stands, the index says how it arrived there.
Recent developments cover the current cycle, close enough that their consequences are still unfolding. Historical developments are the inflection points behind the present position — the decisions and events a reader needs in order to read the ratings above in context.
The Trinidad, flagship of Magellan's circumnavigation, sighted two small islands near the fifth parallel north and named them San Juan. This was the earliest European sighting of what is now Palauan territory, beginning centuries of intermittent Spanish interest.
Sailors from the Caroline Islands stranded on Samar met the missionary Paul Klein and used pebbles to indicate the location and size of their islands. Klein's resulting map and letter to the Jesuit Superior General introduced Palau to European geographical knowledge and triggered later mission attempts.
Prompted by the Klein and Serrano letters, Jesuit expeditions set out from the Spanish Philippines in 1700, 1708 and 1709 without reaching the islands. The repeated failures delayed sustained European engagement with Palau.
Serrano's letter largely reproduced the information Klein had gathered about the islands and their people. Together with Klein's map it stimulated intense European interest in reaching Palau.
Padilla's expedition landed priests Jacques Du Beron and Joseph Cortyl on Sonsorol, but the mother ship Santísima Trinidad was driven to Mindanao by a storm, stranding them. The mission's failure gave Palau its early Spanish name Islas Encantadas, the Enchanted Islands.
A vessel sent from Guam to recover the priests stranded on Sonsorol capsized, causing three further Jesuit deaths. The disaster ended this phase of missionary effort and left Palau largely outside effective Spanish control.
Wilson's East India Company ship Antelope wrecked off Ulong in 1783, and the high chief of Koror allowed his son, Prince Lee Boo, to travel to England with the crew. Wilson named the islands the Pelew Islands, and Lee Boo died of smallpox in London the following year.
Britain, Spain and Germany had all claimed the islands, and the pope's 1885 ruling confirmed Spanish control of Palau and the wider Caroline Islands while granting Britain and Germany economic concessions. Spain administered the islands from the Philippines with limited development.
Palau, under the name Palaos, was included in the first revolutionary congress of the Philippines with one appointed member. The Congress supported Palau's right to self-determination, and the term Palaos then covered the Marshall, Mariana and Caroline Islands under Philippine jurisdiction, with Palau the region's main trading centre.
Spain's defeat forced the disposal of its remaining Pacific island possessions. For Palau this meant the imminent transfer of sovereignty away from Madrid and Manila.
Spain sold the islands under the German-Spanish Treaty of 1899, agreed after its defeat in the Spanish-American War cost it the Philippines. German administration introduced phosphate and bauxite mining and copra plantations, using forced Palauan labour.
Japanese naval forces took the islands in 1914, and the League of Nations formally awarded Palau to Japan as a mandate after the war. Japanese civilian rule brought large-scale immigration that made Palauans a minority in Koror by the 1930s.
Following the First World War, Japanese administration of Palau was formalised as part of the South Seas Mandate. The mandate gave Japan internationally recognised authority and shaped Palau's economy, language and demography.
Baseball arrived during the Japanese mandate period and became the country's most popular sport. The national team later won Micronesian Games gold in 1990, 1998 and 2010 and the 2007 Pacific Games.
Palau supported Japan's 1941 invasion of the Philippines, which succeeded in 1942, overthrowing the American-installed Commonwealth government and installing the Japanese-backed Second Philippine Republic in 1943. This made the archipelago a forward strategic asset in the Pacific war and a target for American assault.
American forces took the islands from Japan in the costly Battle of Peleliu, fought from 15 September to 27 November 1944, which killed some 1,500–2,000 Americans and more than 10,000 Japanese defenders and gave US forces the highest casualty rate of any Pacific amphibious assault, followed by the Battle of Angaur. Historians have long debated whether capturing the island was militarily necessary; the conquest transferred Palau to United States control and left a lasting strategic and commemorative legacy.
After re-establishing control of the Philippines, the United States managed Palau from the Philippine capital until Philippine independence and the formation of the Third Republic in the latter half of 1946. The American Far West Pacific capital then shifted to Guam, reorienting Palau's administrative ties.
Under Security Council Resolution 21, Palau was passed formally to the United States as part of the Trust Territory of the Pacific Islands, which it formed part of for three decades from 1947 following its capture from Japan in the Second World War. Trusteeship framed Palau's political development for the next half-century and obliged the administering power to prepare it for self-government.
Ngerukewid and its surrounding waters were placed under formal protection. It was an early foundation of Palau's later reputation for conservation policy.
A fatal human attack on 28 December 1965, the only one in modern Palauan history, prompted an eradication campaign and a trade in crocodile hides that continued into the 1980s. A conservation programme running since the 1990s later stabilised the Palauan crocodile population.
Palau and the Marshall Islands voted against the proposed federal constitution while four other Trust Territory districts went on to form the Federated States of Micronesia in 1979. Palau instead opted for independent status, a choice supported by the Philippines, Taiwan and Japan.
Palau's 1979 constitution, the world's first to ban nuclear weapons and waste, required a 75 per cent vote to approve any compact permitting them, a threshold seven referendums failed to reach. Two presidents, Haruo Remeliik and Lazarus Salii, were killed during the dispute before an eighth referendum in 1993 was ruled sufficient to proceed.
Palau adopted a constitution in 1979, commemorated as Constitution Day on 9 July, establishing self-government ahead of full independence.
A new constitution was approved and the republic proclaimed, giving Palau its own governing framework while still under trusteeship. The document included the world's first nuclear-free constitutional provision, voted for in 1981.
The compact set the terms of Palau's future sovereignty, defence relationship and American financial support. It formed the legal basis for the transition out of trusteeship completed twelve years later.
Palau joined the regional arrangement governing tuna fisheries access among Pacific island states. Membership gave the small state collective leverage over the resource that dominates its exclusive economic zone.
The constitution recognised Japanese alongside other languages in the state of Angaur, reflecting the legacy of the mandate period when some elders still spoke it. The language is no longer spoken there.
The country's sixteen local divisions, previously called municipalities, were redesignated states. The change formalised the federal-style structure of Palauan local government.
A Compact of Free Association with the US was approved in 1986 but not ratified until 1993, after repeated referendums foundered on the compact's nuclear provisions.
Independence took effect on 1 October 1994, the last of the Pacific trust territories to leave United Nations trusteeship. Under the compact, the United States remained responsible for Palau's defence for 50 years in exchange for military access.
The Security Council recommended admission by Resolution 963 on 29 November 1994 and the General Assembly approved it under Resolution 49/63 on 15 December 1994, ten weeks after Palau formally gained independence. Membership completed Palau's emergence as a recognised sovereign actor, and it became one of the last territories in the world to leave a United Nations trusteeship.
The 1998 law aimed to diversify Palau's narrow, aid-dependent economy by attracting international registration and financial business. Palau followed up in 2001 with its first bank regulation and anti-money-laundering laws.
With around 2,000 delegates expected for the 55th Forum leaders' meeting, running from 30 August to 4 September 2026, authorities finalised accommodation and security arrangements in the preceding weeks. It was the first time Palau had hosted the summit since 2014.
The multi-sport event ran from 3 to 12 July 2026 with about 1,200 athletes from all 16 states, held under a presidential proclamation declaring 2026 the year to say no to illegal drugs. Koror state topped the medal table, ahead of Sonsorol and Airai.
Hsiao's visit from 6 June 2026, her first to a diplomatic ally since taking office, included pledges to station Taiwanese investigators in Palau to help fight cross-border crime and to donate drones to the government. The trip also promoted sustainable tourism between the two countries.
Ministers meeting in Port Vila, Vanuatu, on 15 April 2026 set out steps toward a 100 per cent renewable-energy region and called for a binding global treaty to phase out coal, oil and gas. Samoa, Fiji, Tuvalu, the Federated States of Micronesia and host Vanuatu joined the declaration.
The agreement, signed on 24 February 2026, formalised arrangements for Palau to host around 2,000 delegates under the theme Building Economies: Life, Action, Unity. It marked the most prominent regional gathering held in Palau in over a decade.
The State Department barred Hokkons Baules from entering the United States on 11 February 2026, accusing him of accepting bribes in exchange for advocacy supporting Chinese government, business and criminal interests in Palau. A former Marshall Islands mayor was sanctioned in the same announcement over alleged misuse of a nuclear compensation trust.
The Fund's executive board completed its review on 26 January 2026, estimating growth of 6.7 per cent in FY2025 on rising tourism and construction, with 4.1 per cent projected for FY2026. It warned that geopolitical tensions could delay a full tourism recovery and disrupt donor support.
Palau consented to a large United States Air Force high-frequency radar installation costing well over $100 million, expected to be operational in 2026. The project deepens Palau's strategic role in American Pacific defence architecture.
Palau was among at least 29 countries that told COP30 organisers in Belém they could not support an outcome without a roadmap away from fossil fuels. Palau's ambassador Ilana Seid chaired the Alliance of Small Island States during the talks, which closed without such a roadmap in the final agreement.
Whipps travelled to Japan from 26 to 29 October 2025 for a 'Visit Palau' promotion timed to the new direct service, which began on 29 October. The route aimed to boost Japanese tourist arrivals, a key source of visitors alongside Taiwan and South Korea.
With key House leaders overseas ahead of the 1 October 2025 deadline, lawmakers passed continuing budget authority capped at 25 per cent of the prior year's funding to keep the government running. The episode highlighted recurring tension between the executive and legislature over fiscal management.
Nauru Airlines began weekly direct services to Brisbane in May 2024, taken over by Qantas in December 2024 as the once-weekly Palau Paradise Express using a Boeing 737-800. The route restored long-haul connectivity after earlier regional carriers suspended service during the 2000s.
A goods and services tax took effect alongside a corporate tax rate of four per cent. The reform broadened the domestic revenue base of an aid-dependent state.
The marathon began as a partnership between the two governments. It served as a public expression of the Taiwan relationship and a tourism draw.
On 20 June 2022 Madris played his first game as left fielder for the Pittsburgh Pirates against the Chicago Cubs. It was a first international sporting milestone for Palauan descent.
The scheme rewards visitors for environmentally and culturally respectful behaviour, aiming to preserve the natural environment and traditional culture. It applied Palau's conservation branding directly to its main industry.
Palau left the regional body after a dispute over Henry Puna's election as secretary-general. The withdrawal marked a rupture in Palau's principal regional political forum.
Whipps used his address to underline how dependent the national budget remains on external assistance. The statement framed Palau's development diplomacy in the post-pandemic period.
The Emissions Database for Global Atmospheric Research put average carbon dioxide emissions at 60 tonnes per person, chiefly from transport. The figure sat uneasily alongside the country's conservation leadership.
The two countries revived ties, with the Philippines backing Palau's bid for observer status in ASEAN. The move broadened Palau's regional options beyond its Pacific and American relationships.
Palau joined the United Nations treaty banning nuclear weapons, consistent with its nuclear-free constitution of 1981. The signature reinforced its long-standing anti-nuclear diplomatic stance.
Palau became the first state in the world to establish an eco-promise, printed in local and foreign passports and required of arriving visitors. It embedded environmental conditionality directly into border procedure.
The Japanese imperial couple travelled to Peleliu to honour the war dead of the 1944 battle. The visit marked reconciliation and the enduring Japanese connection to Palau.
The law, passed in 2015 and taking full effect in 2020, closed 80 per cent of Palau's exclusive economic zone to fishing and extractive industry, then one of the largest fully protected marine areas in the world. The remaining waters were reserved for domestic fishing and limited tourism.
The Rock Islands Southern Lagoon received World Heritage listing, and in the same year Palau won the World Future Council's Future Policy Award for leadership in protecting marine ecosystems. Both raised the country's international profile and tourism appeal.
The agreement, reported as unrelated to the Uyghur resettlement deal, renewed American financial support. Aid remains central to Palau's fiscal capacity.
On 25 September 2009 Palau banned commercial shark fishing across roughly 600,000 square kilometres of ocean, an area comparable to France. The measure won international recognition and shaped the country's marine conservation identity.
Palau announced it would take up to seventeen Uyghurs previously held by the American military, with some United States compensation for upkeep costs. The decision demonstrated the diplomatic value of the small state to Washington.
The bank announced bankruptcy and the Palau Horizon reported on 13 December 2006 that 641 depositors were affected, most holding under US$5,000 but some up to US$2 million. Compensation was drawn from the remaining US$955,000 of a Taiwanese development loan to the Palauan government.
Palau convened the inaugural summit linking Taiwan with its Pacific diplomatic partners. The event underlined Palau's alignment with Taipei and its role as a diplomatic venue.
On 5 November 2005 Palau took the lead on a regional initiative to conserve 30 per cent of near-shore coastal waters and 20 per cent of forest land of participating countries by 2020. It established Palau as a regional environmental agenda-setter.
After three decades as part of the UN Trust Territory of the Pacific under US administration, this westernmost cluster of the Caroline Islands opted for independence in 1978 rather than join the Federated States of Micronesia. A Compact of Free Association with the US was approved in 1986 but not ratified until 1993. It entered into force the following year when the islands gained independence.
1 October 1994 (from the US-administered UN trusteeship)
Constitution Day, 9 July (1979)
Oceania, group of islands in the North Pacific Ocean, southeast of the Philippines
7 30 N, 134 30 E
Oceania
slightly more than 2.5 times the size of Washington, DC
0 km
1,519 km
varying geologically from the high, mountainous main island of Babelthuap to low, coral islands usually fringed by large barrier reefs
forests, minerals (especially gold), marine products, deep-seabed minerals
NA
typhoons (June to December)
westernmost archipelago in the Caroline chain, consists of six island groups totaling more than 300 islands; includes World War II battleground of Beliliou (Peleliu) and world-famous rock islands
inadequate facilities for disposal of solid waste; threats to the marine ecosystem from sand and coral dredging, illegal fishing practices, and overfishing
tropical; hot and humid; wet season May to November
Capability-group ratings for Critical Technology are part of the GINC National Capability Framework rather than the country factbook. They are published in the National Capability index, and the per-capability detail lives on the capability pages.
3 (2013)
17,150 (2012)
.pw
7,300 (2012)
4 (2012)
Active-duty strength on the Correlates of War series, which reaches back to 1816 and so carries a nation’s whole record of mobilisation rather than its present establishment. The card opens the full cross-country comparison.
defense is the responsibility of the US; under a Compact of Free Association between Palau and the US, the US military is granted access to the islands for 50 years, but it has not stationed any military forces there (2008)
no regular military forces; Palau National Police (2009)
21,186 (July 2014 est.)
0.37% (2014 est.)
10.95 births/1,000 population (2014 est.)
7.93 deaths/1,000 population (2014 est.)
1.71 children born/woman (2014 est.)
0.66 migrant(s)/1,000 population (2014 est.)
MELEKEOK (capital) 1,000 (2011)
4.8 beds/1,000 population (2010)
48.9% (2008)
NA%
32.8%
10.6% of GDP (2011)
1.38 physicians/1,000 population (2010)
NA
NA
NA
7.3% of GDP (2002)
maritime delineation negotiations continue with Philippines, Indonesia
constitutional government in free association with the US; the Compact of Free Association entered into force on 1 October 1994
16 states; Aimeliik, Airai, Angaur, Hatohobei, Kayangel, Koror, Melekeok, Ngaraard, Ngarchelong, Ngardmau, Ngatpang, Ngchesar, Ngeremlengui, Ngiwal, Peleliu, Sonsorol
ratified 9 July 1980, effective 1 January 1981; amended 1992, 2004 (2011)
18 years of age; universal
mixed legal system of civil, common, and customary law
has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt
bicameral National Congress or Olbiil Era Kelulau (OEK) consists of the Senate (9 seats; members elected by popular vote on a population basis to serve four-year terms) and the House of Delegates (16 seats; members elected by popular vote to serve four-year terms)
none
NA
light blue with a large yellow disk shifted slightly to the hoist side; the blue color represents the ocean, the disk represents the moon; Palauans consider the full moon to be the optimum time for human activity; it is also considered a symbol of peace, love, and tranquility
Palauan (official on most islands) 66.6%, Carolinian 0.7%, other Micronesian 0.7%, English (official) 15.5%, Filipino 10.8%, Chinese 1.8%, other Asian 2.6%, other 1.3%
Roman Catholic 49.4%, Protestant 30.9% (includes Protestant (general) 23.1%, Seventh Day Adventist 5.3%, and other Protestant 2.5%), Modekngei 8.7% (indigenous to Palau), Jehovah's Witnesses 1.1%, other 8.8%, none or unspecified 1.1% (2005 est.)
Palauan (Micronesian with Malayan and Melanesian admixtures) 72.5%, Carolinian 1%, other Micronesian 2.4%, Filipino 16.3%, Chinese 1.6%, Vietnamese 1.6%, other Asian 3.4%, white 0.9%, other 0.3% (2005 est.)
no TV stations; a cable TV network covers the major islands and provides access to rebroadcasts, on a delayed basis, of a number of US stations as well as access to a number of real-time satellite TV channels; about a half dozen radio stations with 1 government-owned (2009)
ACP, ADB, AOSIS, FAO, IAEA, IBRD, ICAO, ICRM, IDA, IFC, IFRCS, ILO, IMF, IMO, IMSO, IOC, IPU, MIGA, OPCW, PIF, Sparteca, SPC, UN, UNAMID, UNCTAD, UNESCO, WHO
40.3% of GDP (2010 est.)
-2.4% of GDP (2010 est.)
2.7% (2011 est.)//1.6% (2010 est.)
$0 (FY99/00)
the US dollar is used
$221 million (2011 est.)
tourism, craft items (from shell, wood, pearls), construction, garment making
NA%
9,777 (2005)
4.2% (2005 est.)
The economy consists of tourism and other services such as trade, subsistence agriculture, and fishing. Government is a major employer of the work force relying on financial assistance from the US under the Compact of Free Association (Compact) with the US. The Compact took effect, after the end of the UN trusteeship on 1 October 1994. The US provided Palau with roughly $700 million in aid for the first 15 years following commencement of the Compact in 1994 in return for unrestricted access to its land and waterways for strategic purposes. Business and leisure tourist arrivals numbered over 109,000 in 2011, for a 27% increase over 2010. The population enjoys a per capita income roughly double that of the Philippines and much of Micronesia. Long-run prospects for tourism have been bolstered by the expansion of air travel in the Pacific, the rising prosperity of industrial East Asia, and the willingness of foreigners to finance infrastructure development. Proximity to Guam, the region's major destination for tourists from East Asia, and a regionally competitive tourist infrastructure enhance Palau's advantage as a destination.
$245.5 million (2013 est.)//$237.2 million (2012 est.)//$223.2 million (2011 est.)
3.5% (2013 est.)//6.3% (2012 est.)//
$10,500 (2011 est.)//$7,600 (2005 est.)
coconuts, copra, cassava (manioc, tapioca), sweet potatoes; fish
1 October - 30 September
$NA
-$20.8 million (2010 est.)//$15.09 million (FY03/04)
$12.3 million (2010 est.)//$5.882 million (2004 est.)
shellfish, tuna, copra, garments
$113.4 million (2010 est.)//$107.3 million (2004 est.)
machinery and equipment, fuels, metals; foodstuffs