Overview:
Nearly a quarter of Palau’s population lives in poverty despite the country’s high-income status — and people with disabilities face even greater challenges. A new report highlights inequality in housing, transportation and opportunity, while also pointing to steps Palau is taking to improve accessibility and inclusion.
By: L.N. Reklai
KOROR, Palau — Despite the reputation as one of the Pacific’s higher-income island nations, nearly a quarter of Palau’s population lives in poverty, with people with disabilities among those facing the greatest economic and social barriers.
A report by the The Borgen Project highlights how disability and poverty intersect in the island nation, pointing to persistent inequality, infrastructure gaps and challenges in access to transportation, employment and services.
Palau, a country of about 17,900 people in the western Pacific, enjoys relatively high living standards and significant financial support from the United States through its Compact of Free Association. Yet the report estimates that 24.9% of the population lives below the poverty line, and the gap between the wealthiest and poorest households remains significant.
The country’s poorest 20% receive only about 9% of national income, compared with 42% earned by the richest 20%, illustrating stark income disparities that can make it difficult for vulnerable groups to improve their economic circumstances.
Among those most affected are Palauans living with disabilities. About 3.4% of the population — more than 2,800 people — live with at least one disability, according to the report.
Advocates say that when disability intersects with poverty, everyday tasks such as traveling to work, accessing health care or finding suitable housing can become far more difficult.
Accessibility improvements underway
Palau has taken steps in recent years to address these challenges, including efforts to make housing more accessible for people with disabilities and older residents.
In 2024, the national government allocated $500,000 through a supplemental budget for eight housing projects administered by the Palau Housing Authority to improve accessibility. The Committee on the Rights of Persons with Disabilities has praised the country’s progress in adapting homes and living spaces to better meet the needs of people with mobility limitations.
Although the projects are relatively new and their long-term impacts remain to be seen, the initiative signals growing recognition that accessible housing is a key factor in improving independence and economic participation for people with disabilities.
Transportation remains a major barrier
While housing access has improved, transportation continues to pose one of the biggest obstacles.
Without reliable and accessible transportation, people with disabilities often struggle to reach workplaces, schools or medical facilities. In Palau, accessible vehicles are available in limited numbers and generally must be requested in advance, making spontaneous travel difficult.
This lack of mobility can reinforce poverty by restricting employment opportunities and access to services.
To address the issue, the government has outlined plans to expand infrastructure, including additional roads and bridges, with the goal of increasing public transportation options in the future.
Health care access and costs
Palau devotes a significant share of national resources to health services. The report estimates that about 14.3% of the country’s gross domestic product is spent on health care, reflecting efforts to provide medical services and support for people with disabilities.
However, limited transportation options can still prevent patients from reaching clinics and hospitals, especially those living outside urban centers.
Health professionals in Palau are widely regarded as providing high-quality care, but advocates say improving transportation and community access would help ensure more residents can benefit from these services.
Laws and awareness campaigns
Palau has also introduced legislation and public awareness initiatives aimed at increasing inclusion.
Lawmakers passed the Persons With Disabilities Act, designed to strengthen protections and expand opportunities for people with disabilities to participate in society, including employment and education.
The country also joins the international observance of International Day of Persons with Disabilities each Dec. 3, encouraging public reflection on equality, dignity and inclusion.
These initiatives raise awareness of the link between disability and poverty and highlight the importance of policies that promote equal opportunity.
Looking ahead
Palau’s experience reflects a broader global challenge: economic progress at the national level does not always translate into equal benefits for all members of society.
The report concludes that continued improvements in housing accessibility, transportation systems and social policies could help reduce the economic vulnerabilities faced by people with disabilities.
“Recognition of the relationship between disability and poverty is an important step toward change,” the report states, noting that greater visibility and targeted policies could help thousands of people in Palau achieve greater independence and economic security.
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