To the Editor:

The Poverty Among the Palauans

By: K.B. Toichi

Palauans have been struggling to keep up with the high cost of living, including electricity bills, fuel prices, and goods and services taxes. The high cost of everything has affected the everyday lives of citizens. With the minimum wage starting at $5.00 per hour, it doesn’t cover most of the basic needs of the people. So, what are the obstacles for Palauans to endure, what are the reasons for them, and how will it affect Palau’s society to combat poverty, and how do cultural events, such as funerals and firstborn ceremonies, need high contributions, and what will the government help its citizens through subsidy programs and the possibility of more government programs to help in the future?

The Cultural Expectations Among the Clans

Every individual Palauan contributes badek, or contributions, when it comes to customary events such as funerals, marriages, and firstborn ceremonies or omengat. Most Palauans agree that it brings bonds to the family and strengthens their relationships. However, according to some of my sources, they confess that they contribute more than what they earn from their jobs, with a few confessing that they spend as much as $3,000 for a funeral, with one commenting, “I spend as much as $500 on three funerals in one day, which is a lot.” Other Palauan individuals admitted to me that they take loans from banks or other lenders to contribute to the omengat.

So, if a Palauan individual spends from hundreds to thousands of dollars, what is the reason? Some answered that it’s for the expenses of the events, while others said events such as funerals, where the amount of money contributed is divided for techel a otutengel, ududir a rengalek, mengetmokl el mor era buchelsechal, etc. However, with so many customary events on every weekend and certain weekdays, most Palauans have to divide the money, with a minimum of $25 per event, but even $25 is hard to earn, according to the same sources.

Some admitted that they are ashamed for not contributing to the families, despite trying to make ends meet. “I know a few of my family members are giving me the silent treatment because I can’t keep up with these funerals every weekend,” one woman I interviewed said. “Some even guilt-trip me that they contributed large amounts of money to my firstborn ceremony, my house party, and my son’s marriage and his wife’s omengat. I understand that I should be grateful and contribute money as a payback for their sacrifice, but they expect more than I could afford to keep up with every funeral that keeps popping up,” she added.

It is a very touchy subject when it comes to Palauan culture, to the point that some individuals are too scared to speak up about the high expectations from their families and clans when it comes to contributing large amounts of money to customary events, despite their poverty and struggles to meet basic necessities.

The Rising Price of Imported Goods and Vulnerability of Our Food Security

The current minimum wage of the Republic of Palau is $5.00, which still doesn’t match the global rising prices, conflicts in the Middle East, and inflation. The majority of Palauans and foreign workers couldn’t afford the rising prices of electricity bills, fuel, and groceries. A few individuals agreed that $100 isn’t enough to buy a 19-pound case of chicken, at least a 20-pound or 50-pound sack of rice, and fresh meats and vegetables that can last until the next payday.

A young adult said, “I am surprised when I purchase a loaf of bread, milk, eggs, 20 pounds of Jasmine rice, and a case of 19-pound chicken, and it costs around $60! Which is the same amount as half of the day I earned, which is $5 an hour.” Along with a few interviewees, they agreed that the minimum wage does not match the current economy, resulting in people looking for quick money or part-time jobs just to survive for a living.

So, if imported goods are expensive, why do we depend on them instead of local foods? Well, there are three reasons: one, we are heavily dependent on canned foods; it is part of our diet and consumption. Another reason is climate change, with the dry season extended to a few more months and our water sources being very low. Some of the crops wouldn’t survive much longer, or they shrink too small, barely enough for a whole meal. It also affects the harvest time, and with fewer local foods, they would be more expensive than imported food.

And the final reason is that we are looking for fast food to save time. Rice can be cooked in 30 minutes, and canned foods only need to be reheated before being served. If both imported and local food are expensive for people who couldn’t afford them, what is their last option? They will rely on nearly expired imported goods and old, nearly rotten vegetables at a lower price. I witnessed a few people buy expired canned food, and they were gracious enough to tell me that they didn’t have a choice: either they buy them or go home empty-handed. It is a harsh reality to have those choices, especially when healthy options are expensive and scarce.

Government Subsidies and Aid

What can the government do to combat poverty in Palau? Our government has provided transportation, like buses with a $1 fee. They also introduced utility subsidies, tax refunds, and child subsidies. Even schools now provide two meals for students, which would relieve some of the parents who struggle to afford food for breakfast.

These benefits can be both good, but there are also downsides to them. With these subsidies, the money has to come from somewhere, right? Yes, it’s from our taxes and the controversial Palau Goods and Services Tax. So, it can be beneficial to us, but it’s a continuing cycle; it’s neither a good nor bad situation.

If our government keeps introducing more programs like what I mentioned, in the future, chances are that the taxes will be much higher than today’s economic situation. To prove a point, I asked many individuals whether Palau should have a program like food stamps to provide relief for Palauans who are in poverty. The answers I received are divided into those who oppose and those who are in favor.

A few commented and said, “It can be helpful, but it can be easily exploited by many who are too lazy to find a job,” while others said, “Palau has a small population, unlike Guam, where it has big supermarkets and a dense population. I don’t think WCTC and Surangel Supercenter are big enough to provide products for food stamp programs. It would cause a shortage of items, and the price would cost even more if we limit the products until the next cargo arrives.”

Those who are in favor agreed that food stamps can help combat poverty, but it also needs to be monitored and should be strictly for necessities and needs, and healthy local goods, with unhealthy options such as alcohol and cigarettes banned. It should also have a limit on the products to prevent a shortage of goods.

In the end, the reality of Palauan poverty is visible. People are struggling to keep up with customary events, and with the lowest minimum wage, it isn’t enough to cover the basic necessities and healthy, nutritious options, and they have had to resort to nearly expired canned foods just to eat.

Our government has implemented as many subsidies and programs as possible to help struggling individuals, and the possibility of future government programs would also be beneficial, but with the cost of higher taxes to continue running these programs. How will we improve our livelihood? What can our government do to lift Palauans out of the poverty line?