Republic of Palau: Staff Report for the 2001 Article IV Consultation

This 2001 Article IV Consultation highlights that the Republic of Palau faces a number of development challenges. Substantial improvements in human and physical infrastructure are needed to sustain higher growth rates. About 80 percent of the land area is on the Babeldaob Island, which is virtually inaccessible now, but it is expected to develop rapidly after the completion of a Japan-funded bridge in 2002 and a United States-funded island access road in 2004. Asset balances have been declining as a result of drawdowns to finance fiscal deficits, as well as recent investment losses.
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Volume/Issue: Volume 2002 Issue 069
Publication date: March 2002
ISBN: 9781451831474
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Business and Economics , Exports and Imports , Economics- Macroeconomics , Public Finance , Taxation - General , ISCR , CR , bottom , import tax reform , reform , staff appraisal , bill , October-November period , a number of development challenge , government asset balance , Income , Tariffs , Current spending , Foreign direct investment , Pacific Islands , Asia and Pacific

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Summary

This 2001 Article IV Consultation highlights that the Republic of Palau faces a number of development challenges. Substantial improvements in human and physical infrastructure are needed to sustain higher growth rates. About 80 percent of the land area is on the Babeldaob Island, which is virtually inaccessible now, but it is expected to develop rapidly after the completion of a Japan-funded bridge in 2002 and a United States-funded island access road in 2004. Asset balances have been declining as a result of drawdowns to finance fiscal deficits, as well as recent investment losses.

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