Annual Report On Republic Of Palaus Implementation Of The Compact Of Free Association

The Compact of Free Association between the Republic of Palau and the U.S. entered into force on Oct. 1, 1994, with the U.S. interest of promoting Palau¿s self-sufficiency and economic advancement. The compact and its related subsidiary agreements provide for a 15-year term of economic assistance. In FY 2009, the two governments must review the terms of the compact and related agreements and agree on any modifications. This is a report on: (1) the provision of compact and other U.S. assistance to Palau in FY 1995-2009; (2) Palau¿s and U.S. agencies¿ efforts to provide accountability over Palau¿s use of fed. funds in 1995-2006; and (3) Palau¿s prospects for achieving economic self-sufficiency. Includes recommendations. Illus.

Statement of David Gootnick, Dir., International Affairs and Trade, GAO. The Compact of Free Association between the U.S. and the Republic of Palau, which entered into force in 1994, provided for several types of assistance aimed at promoting Palau's self-sufficiency and economic advancement. Included were 15 years of direct assistance to the Palau government; contributions to a trust fund meant to provide Palau $15 million each year from 2010 through 2044; construction of a road system, known as the Compact Road; and federal services such as postal, weather, and aviation. U.S. agencies also provided discretionary federal programs related to health, education, and infrastructure. In 2008, GAO projected total assistance from 1994 though 2009 would exceed $852 million. In Sept. 2010, the U.S. and Palau signed an agreement (the Agreement) that would, among other things, provide for additional assistance to Palau and modify its trust fund. This statement describes (1) the Agreement's provisions for economic assistance to Palau, (2) its impact on the trust fund's likelihood of sustaining scheduled payments through 2044, and (3) the projected role of U.S. assistance in Palau government revenues. Figures and tables. This is a print on demand report.

ADB aims to improve the welfare of the people in the asia and pacific region, particularly the nearly 1.9 billion live less than $2 a day. Despite many success sotires, the region remains home to two thirds of the world's poor. ADB is a multilateral development finance instition owned by 67 members, 48 from the region and 19 from other parts of the globe. ADB's vision is a region free of poverty. It mission is to help its developing member countries are poverty and improve their inequility of life. ADB's main instruments for helping its developing memeber vountries are policy dialogue, loans, equity investments, guarantees, grants and technical assistance. ADB's annual lending volume is typically about $6 billion, with technical assistatnce usually totalling about $180 million a year.