ECONOMY -

 

 

We are committed to strengthening our economy by pursuing growth and reforms that benefit

our Palauan people.  We are dedicated to the proper allocation of resources to meet the

basic needs of OUR PEOPLE.  We are dedicated to ensuring that we are financially

responsible in utilizing revenues to promote sustained prosperity for future generations. 

We are dedicated to maximizing returns on our limited resources.

 

For the Private Sector – OUR PLAN focuses on establishing and enabling

environment for strong and sustainable private sector growth that includes:

 

Effective Regulatory Framework –

 

· Well-Defined Legal System for Commercial Activities to ensure sound business practices and consumer protection;

· Transparent Foreign Investment Regulations that promotes foreign direct investments in targeted areas;

·  Sound Banking and Financial Market Framework that protects depositors and instills confidence in our financial system;

·  Equitable Labor Laws that provides for the protection and fair compensation for workers; and

·  Revenue Structure Reform to establish a more equitable and simplified revenue system that facilitates business growth.

· Implementing High-End Tourism Policy (“Quality vs. Quantity”) to maximize the earnings on our resources with minimal impact on our environment;

· Accelerating Land Ownership Resolution to facilitate investments and development that provides real revenue options for the states and income opportunities for families;

· Targeted Sectors for Development at the State and National levels (‘Foundations for Growth’) aimed at developing those areas that have the most potential to contribute to higher economic growth opportunities including –

·                Agriculture/Aquaculture

·                Financial Services Center (Banking and Insurance)

·                Fisheries

·                Trade (Trans-shipment Point)

·                Oil, Gas and Mineral Resources

 

·       Expanded Investment and Improved Maintenance of basic national infrastructure including roads, power, communications, water,        solid waste and sewer systems that meet economic growth requirements.

 

For the Government – OUR PLAN focuses on containing the cost of Government through a ‘balanced budget’ and ensuring Transparency that includes:

 

· Reviewing Government Structure to ensure efficient and responsive delivery of public services;

· Improving Accountability and Productivity of Expenditures by strengthening reporting requirements;

· Periodic publication and assessment of annual fiscal procedures and processes based on international standards to ensure fiscal responsibility and transparency;

· Strengthening Revenue Collection Efforts by focusing available resources on revenue generating activities;

· Expanding Revenue Base through user fees and charges aimed at recovering part of the costs of providing certain services;

· Maintaining and Expanding diplomatic and bilateral relations to promote international and regional cooperation;

· Strengthening the coordination between agencies charged with the task of initiating and coordinating foreign aid and technical assistance project funded programs;

· Working with Governors to complete ongoing capital improvement projects and secure funding for future development;

· Preparation of State Master Development Plans and medium term strategic plans;

· National Government support of “One state [village], one product” development strategy;

· Prioritizing development of state visitor attractions;

· Facilitating National Development Bank of Palau financing of major state development projects (Joint ventures, state, etc.)

· The National Government assisting the states in:

· Financing of studies (feasibility, concept design, etc.)

· Identification/background check of potential investment partners

· Facilitating training;

· Establish an Inter-Agency Group comprised of both public and private membership to monitor and report on the progress of the Plan of Action;

· Establish performance targets for Ministers and mandate the preparation of performance measures for management to ensure that the government is responsive to the needs of the People of Palau; and

· Implement the provisions of future petroleum legislation on which the World Bank, through its technical and funding support, has enabled Palau to retain oil and gas industry experts and consultant to develop it’s the legal and regulatory framework for enactment by the Olbiil Era Kelulau.