One World Radio Australia: Palau Development Options
9/23/95
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Headline: One World Radio Australia: Palau Development Options
Source: Frances Green / Wendy Brambleby / Judi Cooper
Radio Australia
tel: +61 3 9626 1908
fax: +61 3 9626 1899
email: roz@peg.apc.org
Date: 9/23/95
One World: 23 September 1995
PRODUCER: CAROLYN COURT
You're listening to 'One World' Radio Australia's South Pacific environment
program.
COURT: Hello! Carolyn Court here welcome to the program. In six years
several countries in Micronesia could be facing a future without U. S. aid.
While some believe that there will be a huge drop in living standards and
more pressure on natural resources, others believe that this change could
be better for these countries in the long term. One of the economic
alternatives will be developing tourism, but what type of tourism? This
week on "One World" some perspectives on life after Compact funding ceases
and options for development in places such as Palau, the Marshall islands
and the Federated State of Micronesia.
MUSIC
COURT: In 1947 the United Nations gave the United States trusteeship over
what is now the Federated State of Micronesia, the Marshall Islands, Palau
and the Northern Marianas. This gave them the right to administer these
areas and to establish military bases. The United States was also charged
with the responsibility of enabling these islands to become self sufficient
and there's been much debate over whether this has been achieved. Instead
of becoming one Micronesian nation some of these island states decided to
take different political paths and by 1979 Pohnpei, Krosrae, Chuuk and Yap
became the Federated States of Micronesia. The Marshalls became the
Republic of the Marshall Islands and Palau became a Republic as well. The
United States went on to negotiate separate Compacts of Free Association
with these new nations. These Compacts would determine economic and
military arrangements that would run to the year 2001 and in Palau's case
2009. Palau finally agreed on a Compact of Free Association in 1994 after
long internal debate and dissent. They'll receive 450 million dollars over
the next 15 years under this arrangement. There is some likelihood that
Palau may receive more funding after the first Compact agreement is
finished but in the case of the Federated States of Micronesia although
they've received 100 million dollars this year they are unlikely to have
this funding continued after the year 2001. As I travelled through
Micronesia this year I spoke with a number of people about their views on
development options for the future. Sandra Pierentozzi is a former
Minister for Administration and Finance in Palau and she is now the head of
Palau's Chamber of Commerce.
PIERENTOZZI: I'm really enthustaic about Palau's future. I think we
have a very bright future financially speaking and economically speaking
and environmentally speaking too. But that is only so if Palau is careful
these days in managing its financial affairs, in managing its environment,
managing economic development especially in terms of foreign investment
managing what kind of foreign investment we want to see in Palau then
making sure that we strike a fair balance so that we can develop Palau
economically but in a balanced way so that we don't destroy Palau in the
process of economic development but I would like to see Palau strike some
balance where we could live together with nature and survive together and
Palau is only one, and we have only one beautiful Palau if we loose it now
we don't have any prospect for the future. But I think Palau is at a
juncture at this time and history where its just emerging and we are
learning from all our neighbours, especially in areas of economic
development and were going to look at our neighbours and see what they have
done wrong what they have done right and make good judgement and follow our
good instinct to arrive at a good future for Palau.
COURT: Mrs. Pierentozzi believes that tourism will play a vital role in
Palau's economy after the year 2009. She believes that foreign investment
controls need to be loosened but she sees smaller hotel developments as the
most desirable option.
PIERENTOZZI: None of these high rise sky scrapers. If I wanted to see
tall buildings I go to Hong Kong, I go to New York I go else were where
they have high rise. I think I'd like that kind of development to come to
Palau and I'd like to see investors who are environmentally conscious about
Palau. I like to see the kind of light industries coming into Palau and
because of that we realise that Palau needs to have foreign investors come
in to help develop our local economy. The Palau chamber of commerce of
which I'm President and chairman of the board now has supported a piece of
legislation to our Palau national congress to try to open up our policy on
foreign investment. I think in the long run Palau would need foreign
investment to help it grow and to help us develop at least to support the
kind of life styles and standards of living that we are becoming used to.
Everybody has been talking about tourism but I think its not a wise
decision to base our economic well being on tourism alone. I have seen or
we have seen what happened to Guam at the height of its tourist development
when Japan had its economy soaring everybody was a tourist to Guam and then
tourism slacked off, I've seen that happen to Hawaii too and they have
problems, so I believe we have to diversify. There is tourism which
probably would be our leading industry but I think we still have to develop
our fishing industry. I think Palau can go into horticulture too and do
some crop raising and export it to places like Japan or other surrounding
countries that need those kind of products agricultural products. I think
Palau too has a potential for mariculture, we have seen the Micronesian
mariculture demonstration centre here in Palau. They have been able to
grow clams in captivity and they have been sending it all over the world
and I think that's a viable industry. I think Palau can do also aquarium
fish I understand its a big industry in Australia to and Palau has some of
the most beautiful fish and our coral reefs and I think that could be
developed provided we do it properly and not ruin our risk in the name of
development.
COURT: Do you ever get worried that it could come to a point where the US.
money is gone and there becomes too much pressure to push through projects
just to keep the cash flow happening.
PIERENTOZZI: I'm very worried abut that, I mean I have been the Minister
of Administration for Palau and finance and national treasury has been in
my domain and I know for a fact that all it takes is to be careless for a
couple of months and you can see the drastic results and if you are not
careful that money that we got from a Compact of Free Association is going
to go up very fast and like I said earlier we have to manage it carefully
and expand our economic base so that money does not go out but I am very
concerned that it can happen overnight. I have seen the experience of the
Federated States of Micronesia. I understand from what I hear Yap has done
well by investing its money wisely and has been selective in the kind of
projects that it has put in so what I hear is they have money in the banks
and they have their projects done. Other states of Micronesia have not
been as cautious and there experiencing problems financial problems at this
time.
COURT: Former Minister for Finance in Palau, Sandra Pierentozzi.
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Email: roz@peg.apc.org
Frances Green / Wendy Brambleby / Judi Cooper
Radio Australia
tel: +61 3 9626 1908
fax: +61 3 9626 1899
email: roz@peg.apc.org