Palau is a South Pacific Economy including 560 islands with a population of 19,409 and a GDP of US $174 million. Historically, Palau was part of the UN Trust Territory of the Pacific under US Administration. A Compact of Free Association was ratified in 1993 under which the US provides about USD600 million in development assistance. As a result of the Compact Trust Fund, Palau has enjoyed one of the highest living standards in the Pacific Region. It also benefits from tourism (being closer to Asian markets than other South Pacific Island economies).