Abstract
Processes of colonization and decolonization, as well as contemporary exposure to various global forces in the form of foreign investment, aid, guest workers, and tourism, have brought a series of changes to the Republic of Palau. What sustains Palau’s economy and provides the revenue base for its government are financial arrangements with the United States, aid from other governments, foreign investment, and other mainly foreign sources of income. In short, a significant portion of Palau’s livelihood and survivability are secured through external sources of income. Indeed this structure of Palau’s government and its national economy can only be sustained as long as those foreign actors continue to invest capital in Palau. Considering the inherent vulnerability of small island-states and the weakening of indigenous means of production and locally sustainable lifestyles, such a decline in investment might lead to real collapse. With this possibility in mind, this study explores potential state-making strategies for Palau’s future. Using a deductive forecasting method drawn from the Futures Studies field, it suggests alternative future scenarios for Palau. Its main argument is that Palau should consider major elements of the Disciplined Society model in order to strengthen its national foundations, at the same time pursuing the element of Continued Growth with more autonomy.
