Politics of Palau

The politics of Palau take place in a presidential representative democratic republic, whereby the President of Palau is both head of state and head of government. Palau currently has no political parties and is a de facto non-partisan democracy although there is no law preventing the formation of political parties.

Executive power is exercised by the government. Legislative power is vested in both the government and the Palau National Congress. The judiciary of Palau is independent of the executive and the legislature.

History
Palau adopted a constitution on January 1, 1981. ''Patterson, Carolyn Bennett, et al. "At the Birth of Nations: In the Far Pacific." National Geographic Magazine, October 1986 page 493. National Geographic Virtual Library, Accessed 17 May 2018.'' "The westernmost among the emerging nations of the Pacific, the Republic of Palau (or Belau), population more than 15,000, is divided into 16 separate states, each with its own governor, lieutenant governor, and legislature. Most state populations are very small, and one wonders if anyone has time for anything but government, American style and democratic though it may be. An example is Peleliu, the tragic island where more than 13,000 Americans and Japanese died during less than three months of fighting, often hand to hand, in the autumn of 1944.  Pat and I went to Peleliu from Koror, the republic's capital, by speedboat, a wave-tossing, rear-slapping 45 minutes, and arrived to discover it was election day, with five candidates running for governor.  Although Peleliu claims a population of 2,000 people, only 400 actually live there. More registered voters live in Koror than on their home island, and 800 send votes from Guam. The situation is similar in Palau's other states. A current joke puts a laugh in the truth. A man walks into a bar in Koror and calls out, "Hey, Governor!" And half the men in the place stand up. But that's only the state story. The national government is headed by President Lazarus Salii, followed by a vice president, a cabinet responsible for five ministries, a judiciary, and a legislature with a 16-member house and a 14-member senate. Then there's the hereditary leadership. Each village has ten chiefs, ranked in importance. And, dividing the island group, there are two paramount chiefs. Never, I thought, have so few been governed by so many."

While calm in recent years, Palau witnessed several instances of political violence in the 1980s. The republic's first president, Haruo I. Remeliik, was assassinated in 1985; the Minister of State was found to be complicit in the crime. Palau's third president, Lazarus Salii, committed suicide in August 1988 amid bribery allegations. Salii's personal assistant had been imprisoned several months earlier after being convicted of firing shots into the home of the Speaker of the House of Delegates.

Palau gained independence from the United Nations trusteeship administered by the United States on 1 October 1994 and entered a Compact of Free Association with the United States.

The Senate passed legislation making Palau an "offshore" financial center in 1998. Opponents to the legislation voiced fears that the country would become a haven for money launderers and other sorts of criminal activity. In December 1999, a group of major international banks banned U.S. dollar-denominated transactions involving Palau and the other Pacific island states of Vanuatu and Nauru.

Executive branch
Presidential elections take place every four years, when the president and vice president run on separate tickets. The president, who is the head of state and head of government, is currently Surangel Whipps Jr.

Cabinet
The President is advised and assisted in governing by his/her Cabinet, composed of the Vice President and ministers responsible for the eight government ministries. The ministries include Ministry of Finance, Ministry of Justice and Ministry of Education.

Legislature
The Palau National Congress (Olbiil era Kelulau) is a bicameral legislature consisting of the House of Delegates and the Senate of Palau, which both sit at the Capitol Complex in Ngerulmud, Melekeok State.


 * The House of Delegates has 16 members, each serving four-year terms from single-seat constituencies.
 * The Senate has 13 members, also serving four-year terms in multi-seat constituencies.

In the last elections, held on 1 November 2016, only non-partisans were elected; no political parties exist.

Judiciary
The judiciary of Palau interprets and applies the laws of Palau, as modified by custom and tradition, to ensure equal justice under law, and to provide a mechanism for dispute resolution. The judiciary comprises a four-member Supreme Court, a Court of Common Pleas, and a Land Court. The Supreme Court has a trial division and an appellate division and is presided over by the Chief Justice, assisted by three Associate Justices and a number of ad hoc part-time Associate Justices.

Agencies
The executive branch also has some independent agencies, including the Environmental Quality Protection Board, created in 1981 and tasked with protecting the "unique and aesthetically beautiful environment while promoting sustainable economic and social development".

COFA Trust Fund Board
To manage the funds appropriate to Palau from the United States through the Compact of Free Association (COFA), the COFA Trust Fund Board was reestablished in 2014. The Board meets monthly to review the trust fund's performance and meets annually with the investment advisor (currently Raymond James & Associates' Asia-Pacific Group, based in Guam).