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Background 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. Population 20,879 (July 2010 est.) Government type 16 states; Aimeliik, Airai, Angaur, Hatohobei, Kayangel, Koror, Melekeok, Ngaraard, Ngarchelong, Ngardmau, Ngatpang, Ngchesar, Ngeremlengui, Ngiwal, Peleliu, Sonsorol Administrative divisions constitutional government in free association with the US; the Compact of Free Association entered into force on 1 October 1994 Independence Constitution Day, 9 July (1979) International organization participation 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 Economy - overview Market value of publicly traded shares tourism, craft items (from shell, wood, pearls), construction, garment making Agriculture - products NA% Industries Industrial production growth rate Electricity - production Internet country code