Asian Development Bank and Palau: Fact Sheet

Abstract

Updated yearly, this ADB Fact Sheet provides social and economic indicators on the Palau as well as concise information on ADB's operations in the country and contact information. Palau is an archipelagic microstate in the Northwest Pacific with a population of 20,300 and a gross domestic product of $8,133 per capita. Despite relatively high income, Palau’s small markets and dependence on aid and tourism make it vulnerable to external economic shocks, the impacts of climate change and extreme weather events. Palauan culture is strong, complex, and ever-evolving. Respect for tradition and the satisfaction of belonging to a community remain important in Palau. Palauans welcome economic development but want to ensure that it does not harm their culture, society, and environment. The National Master Development Plan of 1995 established long-term strategies for Palau. These have been supplemented by the Medium-Term Development Strategy that provides a 5-year road map toward achieving sustainable development. The overarching strategic themes are getting the price right (cost recovery and targeted subsidies), reducing costs, and ensuring conservation in government spending and generating income opportunities for all Palauans. Priority areas for action include tourism, agriculture, fisheries, infrastructure development, private sector development, and creating a more sustainable government.