Palau

The Republic of Palau is a western Pacific nation of more than 340 small volcanic and coral islands, of which only 10 are inhabited. The islands are divided into 16 states, each with its own governor and legislature. Palau is a former Pacific Trust Territory of the United States and bilateral relations continue under a Compact of Free Association. The United States provides financial assistance and defence to Palau in exchange for rights to maintain a military presence. The standard of living in Palau is among the highest in the Pacific, with well-established health and education services.¹²⁹ Almost all of Palau’s MDGs were reached with the exception of MDG 1 (Eradicate Extreme Poverty and Hunger), which showed mixed results because of relatively high levels of unemployment and the increasing number of households living below the Basic Needs Poverty Line.¹³⁰

More than 70 per cent of Palau’s 20,000 people live on Koror Island, the commercial hub, where problems of urbanization

such as overcrowding and water insecurity occur. The remaining 15 states, excluding the recently established capital city Ngerulmud, are considered rural areas. Significant outmigration of Palauan nationals to the United States and Guam is matched by in-migration of workers from Asian countries, leading to a net growth rate of 0.5 per cent. Social relationships and traditions in Palau are governed by kinship obligations, customary exchanges, and respect for all things living and non- living. These values often stand in contrast to Western values, presenting a tension for Palauans to live “between two worlds”.¹³¹

The main economic challenge Palau faces is to reduce its general vulnerability by diversifying its base and strengthening its fiscal self-sufficiency. As with other Pacific Island nations, Palau is reliant on ODA (from the US Compact and Trust Fund), external grants, and imported food. The economy has performed well in recent years with GDP growth of 9.4 per cent driven by a dramatic increase in low-budget tourists and construction activity. The rapid expansion of tourism has placed considerable demand on aging infrastructure and the country’s fragile environment in addition to producing adverse social and cultural impacts. This has prompted concerns about the carrying capacity of Palau in the short to medium term. In response, the government has limited the number of in-bound flights and is seeking to cultivate higher-end ecotourism¹³² and a sustainable pathway for tourism development.

Palauan society is matrilineal and women have always held positions of power and respect. However, women remain under- represented in the national congress, cabinet and senior leaderships positions. A quarter of women have experienced physical and/or sexual violence from a partner.¹³³ Although women are afforded equality of opportunity under the constitution, there is no sexual harassment, human trafficking, or sex tourism legislation.¹³⁴ Palau has the lowest adolescent pregnancy rate in the region.¹³⁵

The epidemiological profile of Palau is demonstrating a mounting burden of NCDs, including diabetes, obesity, and kidney failure, with more than half of the annual health budget allocated to NCD management. In 2010 the President of Palau declared a national chronic disease emergency to address the NCD crisis.

Palau has a global reputation for marine conservation and is recognised as a leader in sustainable development. Balancing economic development with the preservation of natural assets is an ongoing challenge for Palau. Pollution, solid waste disposal, unsustainable development, crop disease, declining marine resources, and invasive species all threaten the country’s unique biodiversity. During the El Niño weather pattern of 2015-2016, Palau recorded its lowest annual rainfall in 65 years and a State of Emergency was declared. The drought had a devastating impact on Jellyfish Lake, one of Palau’s most significant national treasures.

Treaty Ratifications: CRC, CRPD, CBD, CWC, CCM, CCD, ICDS, ICCHASS, ICRW, ICCLOPD, ICLL, ICS, CIMO, CIMSO, CLS, MLC, ICMSR, ICOPPRC, CPPNM, CMPE, CPS, CSICH, SCPOP, UNFCCC, WHO FCTC, Cononou Agreements, Kyoto Protocol, Paris Agreement, CCPWCNH, CWII, ICADS, CSICH

Resident and Non-resident Agencies: ILO, IOM, UNAIDS, UNDP, UNESCAP, UNESCO, UNFPA, UNICEF, UNISDR, UNOCHA, UN Women, WHO, OHCHR

Coordination: Palau Joint Presence Office

Republic of Palau National Master Development Plan (NMDP) 2020: “Sustainable and widespread improvement in general standards of living while preserving cultural and environmental values for the people of Palau”

• ¹²⁹Bealu Family Health and Safety Study, Palau Ministry of Health, 2014.
• ¹³⁰MDG Tracker, Pacific Islands Forum Secretariat, 2015.
• ¹³¹A Situation Analysis of Children, Youth and Women, Government of Palau and UNICEF, 2008
• ¹³²Palau Economy, ADB, 2010
• ¹³³Bealu Family Health and Safety Study, Palau Ministry of Health, 2014.
• ¹³⁴Palau, Asia Pacific, UN Women, 2016.
• ¹³⁵Palau Country Profile, UNFPA, 2016

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