Pakistan
The Indus Valley civilization, one of the oldest in the
world and dating back at least 5,000 years, spread over much of what
is presently Pakistan. During the second millennium B.C., remnants
of this culture fused with the migrating Indo-Aryan peoples. The
area underwent successive invasions in subsequent centuries from the
Persians, Greeks, Scythians, Arabs (who brought Islam), Afghans, and
Turks. The Mughal Empire flourished in the 16th and 17th centuries;
the British came to dominate the region in the 18th century. The
separation in 1947 of British India into the Muslim state of
Pakistan (with West and East sections) and largely Hindu India was
never satisfactorily resolved, and India and Pakistan fought two
wars - in 1947-48 and 1965 - over the disputed Kashmir territory. A
third war between these countries in 1971 - in which India
capitalized on Islamabad's marginalization of Bengalis in Pakistani
politics - resulted in East Pakistan becoming the separate nation of
Bangladesh. In response to Indian nuclear weapons testing, Pakistan
conducted its own tests in 1998. The dispute over the state of
Kashmir is ongoing, but discussions and confidence-building measures
have led to decreased tensions since 2002. Mounting public
dissatisfaction with President MUSHARRAF, coupled with the
assassination of the prominent and popular political leader, Benazir
BHUTTO, in late 2007, and MUSHARRAF?s resignation in August 2008,
led to the September presidential election of Asif ZARDARI, BHUTTO?s
widower. Pakistani government and military leaders are struggling to
control Islamist militants, many of whom are located in the tribal
areas adjacent to the border with Afghanistan. The Pakistani
government is also faced with a deteriorating economy as foreign
exchange reserves decline, the currency depreciates, and the current
account deficit widens.

Palau
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.

Panama
Explored and settled by the Spanish in the 16th century,
Panama broke with Spain in 1821 and joined a union of Colombia,
Ecuador, and Venezuela - named the Republic of Gran Colombia. When
the latter dissolved in 1830, Panama remained part of Colombia. With
US backing, Panama seceded from Colombia in 1903 and promptly signed
a treaty with the US allowing for the construction of a canal and US
sovereignty over a strip of land on either side of the structure
(the Panama Canal Zone). The Panama Canal was built by the US Army
Corps of Engineers between 1904 and 1914. In 1977, an agreement was
signed for the complete transfer of the Canal from the US to Panama
by the end of the century. Certain portions of the Zone and
increasing responsibility over the Canal were turned over in the
subsequent decades. With US help, dictator Manuel NORIEGA was
deposed in 1989. The entire Panama Canal, the area supporting the
Canal, and remaining US military bases were transferred to Panama by
the end of 1999. In October 2006, Panamanians approved an ambitious
plan to expand the Canal. The project, which began in 2007 and could
double the Canal's capacity, is expected to be completed in 2014-15.

Papua New Guinea
The eastern half of the island of New Guinea -
second largest in the world - was divided between Germany (north)
and the UK (south) in 1885. The latter area was transferred to
Australia in 1902, which occupied the northern portion during World
War I and continued to administer the combined areas until
independence in 1975. A nine-year secessionist revolt on the island
of Bougainville ended in 1997 after claiming some 20,000 lives.

Paracel Islands
The Paracel Islands are surrounded by productive
fishing grounds and by potential oil and gas reserves. In 1932,
French Indochina annexed the islands and set up a weather station on
Pattle Island; maintenance was continued by its successor, Vietnam.
China has occupied the Paracel Islands since 1974, when its troops
seized a South Vietnamese garrison occupying the western islands.
China built a military installation on Mischief Reef in 1999. The
islands are claimed by Taiwan and Vietnam.

Paraguay
In the disastrous War of the Triple Alliance (1865-70) -
between Paraguay and Argentina, Brazil, and Uruguay - Paraguay lost
two-thirds of all adult males and much of its territory. It
stagnated economically for the next half century. In the Chaco War
of 1932-35, Paraguay won large, economically important areas from
Bolivia. The 35-year military dictatorship of Alfredo STROESSNER
ended in 1989, and, despite a marked increase in political
infighting in recent years, Paraguay has held relatively free and
regular presidential elections since then.

Peru
Ancient Peru was the seat of several prominent Andean
civilizations, most notably that of the Incas whose empire was
captured by the Spanish conquistadors in 1533. Peruvian independence
was declared in 1821, and remaining Spanish forces defeated in 1824.
After a dozen years of military rule, Peru returned to democratic
leadership in 1980, but experienced economic problems and the growth
of a violent insurgency. President Alberto FUJIMORI's election in
1990 ushered in a decade that saw a dramatic turnaround in the
economy and significant progress in curtailing guerrilla activity.
Nevertheless, the president's increasing reliance on authoritarian
measures and an economic slump in the late 1990s generated mounting
dissatisfaction with his regime, which led to his ouster in 2000. A
caretaker government oversaw new elections in the spring of 2001,
which ushered in Alejandro TOLEDO as the new head of government -
Peru's first democratically elected president of Native American
ethnicity. The presidential election of 2006 saw the return of Alan
GARCIA who, after a disappointing presidential term from 1985 to
1990, returned to the presidency with promises to improve social
conditions and maintain fiscal responsibility.

Philippines
The Philippine Islands became a Spanish colony during
the 16th century; they were ceded to the US in 1898 following the
Spanish-American War. In 1935 the Philippines became a
self-governing commonwealth. Manuel QUEZON was elected president and
was tasked with preparing the country for independence after a
10-year transition. In 1942 the islands fell under Japanese
occupation during World War II, and US forces and Filipinos fought
together during 1944-45 to regain control. On 4 July 1946 the
Republic of the Philippines attained its independence. The 20-year
rule of Ferdinand MARCOS ended in 1986, when a "people power"
movement in Manila ("EDSA 1") forced him into exile and installed
Corazon AQUINO as president. Her presidency was hampered by several
coup attempts, which prevented a return to full political stability
and economic development. Fidel RAMOS was elected president in 1992
and his administration was marked by greater stability and progress
on economic reforms. In 1992, the US closed its last military bases
on the islands. Joseph ESTRADA was elected president in 1998, but
was succeeded by his vice-president, Gloria MACAPAGAL-ARROYO, in
January 2001 after ESTRADA's stormy impeachment trial on corruption
charges broke down and another "people power" movement ("EDSA 2")
demanded his resignation. MACAPAGAL-ARROYO was elected to a six-year
term as president in May 2004. The Philippine Government faces
threats from three terrorist groups on the US Government's Foreign
Terrorist Organization list, but in 2006 and 2007 scored some major
successes in capturing or killing key wanted terrorists. Decades of
Muslim insurgency in the southern Philippines have led to a peace
accord with one group and an ongoing cease-fire and peace talks with
another.

Pitcairn Islands
Pitcairn Island was discovered in 1767 by the
British and settled in 1790 by the Bounty mutineers and their
Tahitian companions. Pitcairn was the first Pacific island to become
a British colony (in 1838) and today remains the last vestige of
that empire in the South Pacific. Outmigration, primarily to New
Zealand, has thinned the population from a peak of 233 in 1937 to
less than 50 today.

Poland
Poland is an ancient nation that was conceived near the
middle of the 10th century. Its golden age occurred in the 16th
century. During the following century, the strengthening of the
gentry and internal disorders weakened the nation. In a series of
agreements between 1772 and 1795, Russia, Prussia, and Austria
partitioned Poland amongst themselves. Poland regained its
independence in 1918 only to be overrun by Germany and the Soviet
Union in World War II. It became a Soviet satellite state following
the war, but its government was comparatively tolerant and
progressive. Labor turmoil in 1980 led to the formation of the
independent trade union "Solidarity" that over time became a
political force and by 1990 had swept parliamentary elections and
the presidency. A "shock therapy" program during the early 1990s
enabled the country to transform its economy into one of the most
robust in Central Europe, but Poland still faces the lingering
challenges of high unemployment, underdeveloped and dilapidated
infrastructure, and a poor rural underclass. Solidarity suffered a
major defeat in the 2001 parliamentary elections when it failed to
elect a single deputy to the lower house of Parliament, and the new
leaders of the Solidarity Trade Union subsequently pledged to reduce
the Trade Union's political role. Poland joined NATO in 1999 and the
European Union in 2004. With its transformation to a democratic,
market-oriented country largely completed, Poland is an increasingly
active member of Euro-Atlantic organizations.