The Influence of the United States Compact of Free Association Agreement with Palau

• Main Authors: NGIRMERIIL, LAYDEE MELANCH, 林美玲
• Other Authors: HSIAO, BRUCE LI-KAI
• Format: Others
• Language: en_US
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/69769656921729466697

碩士 === 銘傳大學 === 國際事務碩士學位學程 === 104 === This thesis examines the relationship between the US and Palau agreement regarding the Compact of Free Association since its effective date in 1994. During the 21st century many donor countries contribute to the development of these receiving nations, the question that comes to mind “Is Palau self-sufficient in terms of economic development or are they still dependent on the 2nd CFA proposed increase of monetary aid to help develop the proposed four sectors within the CFA?” The purpose of this research is to study the financial aid impacts of the CFA between the Republic of Palau and the United States and how it has helped develop the nation and what improvements need to be made. It will examine the four main aspects of development as proposed by the CFA under the Educational, Economic, Social, and Infrastructure. In order to resolve these questions the researcher conducted a qualitative study, which consisted of in-depth interviews with the heads of states regarding their knowledge of the proposed sectors and compilation of primary data, which help support the research. This research covers the proposed provisions on the CFA as well as the development process of each sector. Through reevaluating and examining the relationship between these two nations we can respectfully analyze Palau’s development. The findings presented the educational sector as fully dependent on the US-Palau CFA relationship. The CFA fully funds Palauan individuals who wish to achieve a better and higher education for their children or themselves. The economic sector is semi-independent from the CFA support. Although the CFA provides funding to help run Palau’s government, Palau’s economy in the last decade has gradually increased to help operate the state. The infrastructure sector is semi-dependent to the CFA due to certain infrastructure projects mentioned within the agreement. Once the projects are completed with in Palau the infrastructure sector will no longer be dependent on the US CFA agreement, Palau will maintain its own constructions. The social sector is fully independent from the CFA because it is based on an individual’s freedom to roam and reside within each state. Hence the US CFA monetary aid has widely improved and developed Palau. It has advanced and improved the nation and presented many opportunities to the people. Foreign aid has a positive impact in Palau where it has done more good towards development of the nation. However although aid is effective in a nation building, the results presented that government policy of aids should be highly guarded and managed. The aid must be prioritized to the needs of the state. Palau does not necessarily need to apply aid in every project that appears however it needs to rank and implement the most important ones to the least.