by Alonzo Kahalic/ alkahalic6801@gmail.com

Dear Editor,

Addressing the Source, Not Just the Symptoms: Palau’s Economic Reality

As Palau’s government heads into its fifth month of this administration, one thing has become painfully clear: ‘our leaders are still only addressing the symptoms of our economic struggles, not the root causes.’

While our elected officials debate the cost of water, wastewater, and electricity, they continue to ignore the real essentials — food and fuel — the very lifelines for our people’s survival. This shortsighted, reactionary approach is leaving 78% of Palau’s population struggling in silence, and it is past time for a reckoning.

Recent statistics in 2020 make the situation unavoidable:

• 61% of Palauans earn below $10,000 a year,
• 17% earn between $10,000 and $14,999,
• meaning 78% of the population earns less than $15,000 annually.

According to U.S. standards, the federal poverty level for a single person is $15,650. Even based on Palau’s own GDP per capita of around $15,899.42 USD (World Bank, 2023), the majority of Palauans live below what is considered sustainable income. Yet somehow, our leaders treat this reality as an afterthought rather than the priority it demands.

Instead of proactive planning and long-term solutions, we see leaders jumping from crisis to crisis, playing the blame game on television and in public hearings. As a saying from the United States reminds us, “If you don’t want a circus, stop hiring clowns.” Sadly, Palau’s political stage today reflects this circus. Visibility on TV, social media, and during hearings does not make someone an expert. In a small island community like ours, we know each other — we know your knowledge, your experiences, and your actions. Pretending to know better while ignoring the voices of workers, business owners, and struggling families only widens the divide.

The Role Confusion is Alarming. The Olbiil Era Kelulau (OEK) is supposed to make the laws. The Executive branch is supposed to implement the laws. The Judiciary is supposed to interpret the laws. When the OEK tries to act like the Executive by holding endless hearings to micromanage, and when the Executive thinks it knows better than those elected to legislate, our house becomes divided — and a house divided will fall. No wonder ministers are struggling to get reappointed. While leadership fights over turf, the people are struggling to afford necessities.

Meanwhile, the government continues to act like tourism will somehow magically rescue us. Let’s be honest: Palau is no longer just a “diving site” destination. The high cost of living combined with low returns on tourists’ hard-earned money makes Palau an unattractive option. Our cost of food, transportation, fuel, and lodging are out of proportion to the experience tourists receive. Until this fundamental imbalance is addressed, no marketing campaign will save us.

Where is proactive leadership? Instead of focusing on water bills and pointing fingers, leaders need to:

Spend time with the people who work at PPUC, PNCC, Public Works, and local businesses. Listen to real struggles and ask real questions. Craft laws that protect essential goods — food, fuel, medicine — from excessive taxation. Ensure workers’ rights are protected so laborers and businesses are both held accountable under fair contracts. Support small businesses by ensuring that businesses registered under Palauan names empower those individuals, not just exploit their identities. Most importantly, stop pretending poverty isn’t real.
78% of Palau’s population is living below $15,000/year, meaning that in the eyes of the world’s economic standards, Palau is a nation drowning in poverty. Yet our leaders are more concerned with image, positioning, and political survival.

Is it a failure of knowledge, a failure of compassion, or simply a failure of will? My suspicion leans toward the latter — but there remains a small hope. As Father Felix Yaoch once said and I am paraphrased, ‘Father, forgive us, for we are the ones who voted for them.”

It is a powerful reminder that our leaders are reflections of our choices. If we want better leaders, we must demand better leadership. That starts with calling out the truth, pushing for proactive solutions, and holding elected officials accountable — not just when it is convenient, but every single day they serve.

Palau deserves better. And it starts by addressing the real source of our struggles — not just the symptoms.

Your Humble Servant

Al Kahalic