Palau is an electoral democracy. The 2008 presidential and parliamentary elections were considered free and fair. The bicameral legislature, the Olbiil Era Kelulau, consists of the 9-member Senate and the 16-member House of Delegates. Legislators are elected to four-year terms by popular vote, as are the president and vice president. The president may serve only two consecutive terms. The country is organized into 16 states; each is headed by a governor, and each has a seat in the House of Delegates. Every state is also allowed to formulate its own constitutional convention and elect a legislature and head of state.
There are no political parties, though no laws prevent their formation. The current system of loose political alliances that quickly form and dismantle has had a destabilizing effect on governance.
Official corruption and abuse are serious problems. Several high-ranking public officials have faced charges in recent years. The speaker of the Koror state government, the governor of Melekeok state, and former president Tommy Remengesau were all convicted of misconduct in 2009. In January 2010, President Johnson Toribiong ordered the special prosecutor to take legal action against Senate president Mlib Tmetuchl and his brother, Lucius Malsol, for allegedly laundering $22.5 billion; the attorney general’s office dismissed the charges against them in March, citing lack of evidence. While new measures to combat money laundering were introduced in 2007, evaluations have found significant deficiencies in due diligence, record keeping, and monitoring, and the attorney general’s office generally lacks the resources to oversee implementation of these measures.
Freedoms of speech and the press are respected. There are several print publications, five privately owned radio stations, and one privately owned television station. Cable television provides rebroadcasts of U.S. and other foreign programs. The government does not impede internet access, but high cost and a lack of connectivity outside the main islands limit diffusion.
Citizens of Palau enjoy freedom of religion. Although religious organizations are required to register with the government, applications have never been denied. There have been no reports of restrictions on academic freedom, and the government provides well-funded basic education for all.
Freedoms of assembly and association are respected. Many nongovernmental groups represent youth, health, and women’s issues. Workers can freely organize unions and bargain collectively, though the economy is largely based on subsistence agriculture and is heavily dependent on U.S. aid and rent payments, as well as remittances from Palauans working overseas.
The judiciary is independent, and trials are generally fair. A 300-member police and first-response force maintains internal order. Palau has no military. There have been no reports of prisoner abuse, though overcrowding is a problem in the country’s only prison.
Foreign workers account for about one-third of the population and 75 percent of the workforce.There have been reports of discrimination against and abuse of foreign workers, who cannot legally change employers once they arrive in Palau and are paid far lower wages than Palauans. In response to social tensions and a slower economy, the government in 2009 decided to limit the number of foreign workers present in the country at any time to 6,000.
Women are highly regarded in this matrilineal society, in which land rights and familial descent are traced through women. Many women are active in traditional and modern sectors of the economy and in politics, though there are no women in the legislature. The number of domestic violence and child abuse cases remains small.Sexual harassment and rape, including spousal rape, are illegal. Palau is a destination for women trafficked for the purpose of prostitution.