Politics and Government
Palau's politics takes place in a multi-party framework of a presidential representative democratic republic, whereby the President of Palau is both head of state and head of government. Executive power is exercised by the government, while legislative power is vested in both the government and the Palau National Congress. The judiciary is independent of the executive and the legislature. The new capital is Ngerulmud.
Palau adopted its own constitution in 1981, and the governments of the United States and Palau concluded a Compact of Free Association in 1986, similar to compacts that the United States had entered into with the Federated States of Micronesia and the Republic of the Marshall Islands. The compact entered into force on October 1, 1994, concluding Palau's transition from trusteeship to independence as the last portion of the Trust Territory of the Pacific Islands to gain its independence.
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