Palau is for Palauans

Palau has many wonderful things going for it. It is the most developed independent nation in the region. It is a leader in conservation and a prime example to the world on what can be done. And yet even with all that is right with the country, native Palauans migrate overseas by the masses.

It's an issue no one is discussing. Perhaps because it's an issue we fear to accept as a reality.
There are two ways of addressing this problem. Instill in the minds of the Palauan people that the quality of life at home is better then that of living abroad. Or, hyper focus all our efforts to grow the economy thus improving the quality of life. It very well may take both approaches to keep Palauans in Palau. Asia Outlook provides an insightful overview of economic activity in Palau. There is much room for improvement.

Aside from growing the economy, the island nation must operate more efficiently. A respectable amount of money does indeed flow into the Palauan economy. The problem lies in that Palau is not the final destination of that flow of money. Too many businesses on island are owned by foreign nationals. They take advantage of the country's natural assets and in turn the profits are not reinvested into Palau, but instead is sent outside. Additionally, Palau relies heavily on foreign workers. Due to the high volume of foreign workers, the economy loses more to remittances as the foreign workers send money back to their homelands. Money comes into Palau then it slips right back out. The consequences to poor foreign policy does not stop there.

There have been recent notions made to raise the minimum wage. It is a obvious move considering the economic struggles everyday Palauans face. However, decisions regarding minimum wage need to be carefully analyzed by professionals. There are fundamental laws of economics to abide by. Again, the nation's reliance on foreign labors hurts the economy in this respect as well. The federal minimum wage is $3.50/hr while many employers can get away with paying a foreigner $2.50/hr, it's an easy choice for businesses owners to hire the foreign worker. And so the minimum wage cannot go any higher as there will always be a foreigner willing to do it for less. The solution is simple. Enforce equal wages and accept less foreign labor.

Aside from developing a better foreign affairs policy, citizens need to be better about investing in local goods. BUY LOCAL PRODUCE. This may seem like a straight forward obvious answer, but think about this: Fresh tuna is exported while Palauans willingly pay higher prices for imported canned tuna. One primary contributing factor to the high cost of living in Palau is the need to import consumer goods. The ability to produce goods within Palau would be the fastest way to lower prices thus improving the cost of living.

Palau is for Palauans. Invest in the Palauan people or they will leave. As the late Max Moros stated "ia sechelei, fertilize the bottom, not the top". That statement rings more true today than ever before. Every year we lose too many of our people to migration. Palauans both young and old will join the military, workforce programs, or family already living abroad. Let's work together to give Palauans a reason to stay and to return home.