0 FOREWORD I am pleased to present our first Voluntary National Review on the SDGs. This Review is yet another important benchmark in our ongoing commitment to transform Palau along a path of sustainability, while also ensuring that no one is left behind. This journey towards a sustainable future is not one for gov- ernment alone, nor a single nation, but for us all. Given the SDG’s inherent inter-linkages, we acknowledge that our challenges are also interrelated, and thus so too must be our solutions. The accelerated pace of global change we see today makes it particularly diffi- cult for small island nations, like Palau, to keep up, let alone achieve sustaina- ble development. Despite this challenge, we firmly believe that we can achieve a sustainable future for Palau. Our conviction stems from our certainty that we can confront our challenges by combining our lessons from the past with new information and modern technology and use them to guide us to stay the right course along our path to the future. Just as important, we are also confi- dent in this endeavor because we can also find solutions amongst each other. Over the past three years, Palau has systematically pursued a rigorous process of assessing our Pathways to 2030. Eight inter-sector working groups, led by government ministries, but including representatives from civil society, and semi-private organizations, have prepared this initial Voluntary National Review. The groups have selected an initial set of 95 SDG global targets and associated indicators that collectively constitute our initial National SDG Framework. The VNR process employed ideals that are central to the SDGs, including commitments to ‘leave no one behind’; allowing each country to address implementation in ways that are most relevant to their domestic and local context; and taking concrete approaches to build greater under- standing and engagement among donors, partners, and stakeholders. In moving forward with our development, we are guided by the SDGs that were adopted and adapted specifi- cally for Palau. Learning from the past – the traditional knowledge that has served Palau for millenniums, we will move forward to address the gaps identified during our VNR process guided by the principles of inclusion and equity ensuring that no one is left behind. Tommy E. Remengesau, Jr. President, Republic of Palau 1i Map of Palau Map courtesy of PALARIS 0 ii Acronyms and Abbreviations APR Annual Performance Review MSA Medical Savings Account BBP Bureau of Budget and Planning MTBF Medium Term Budget Framework CHCs Community Health Centers MTDS Medium Term Development Strategy CTFP Coalition for a Tobacco Free Palau NCDs Non-Communicable Diseases EQPB Environmental Quality Protection Board NEMO National Emergency Management Office FPA Family Protection Act OERC Office of Environmental Response and Coordination GDP Gross Domestic Product PAN Protected Areas Network GNI Gross National Income PCAA Palau Community Action Agency HCR (Palau) Health Care Fund PPP Public Private Partnerships HDI Human Development Index SDGs Sustainable Development Goals HIES Household Income and Expenditure Survey SOE State of the Environment (Report) IMR Infant Mortality Rate SORA State of the Republic Address IOM International Organization on Migration TPA Terrestrial Protected Area KRAs Results Areas U5MR Under 5 (Child) Mortality Rate MCCA Ministry of Community and Cultural Affairs UAK Ulkerreuil A Klengar MDGs Millennium Development Goals UN United Nations MMR Maternal Mortality Ratio UNCT United Nations Country Team MOE Ministry of Education UNDP United Nations Development Program MOF Ministry of Finance UNICEF United Nations Children’s Fund MOH Ministry of Health UNFPA United Nations Fund for Population Activities MOJ Ministry of Justice VDS Vessel Day Scheme MOS Ministry of State VNR Voluntary National Review MPA Marine Protected Areas WHO World Health Organization MNRET Ministry of Natural Resources, Environment and Tourism l iii0 Table of Contents Executive Summary…………………………………………………………………………… 1 Section 1: Our Journey……………………………………………………………………… 3 Section 2: Sustainable Development Goals – Progress and Next Steps………….. 7 Pillar One: People…………………………………………………………………… 8 SDG 2: Food and Nutrition……………………………………………… 9 SDG 3: Health……………………………………………………………… 13 SDG 4: Education…………………………………………………………. 17 SDG 11: Cities and Human Settlements………………………………. 20 Pillar Two: Prosperity………………………………………………………………. 22 SDG 1 and 10: Poverty and Inequality………………………………… 23 SDG 8: Economic Growth and Decent Work………………………… 27 SDG 9: Industry and Infrastructure…………………………………… 31 Pillar Three: Planet………………………………………………………………….. 32 SDG 6: Water and Sanitation…………………………………………… 33 SDG 7: Energy…………………………………………………………….. 35 SDG 12: Sustainable Production and Consumption………………… 36 SDG 13: Climate Action…………………………………………………… 38 SDG 14: Oceans……………………………………………………………. 41 SDG 15: Land and Forests……………………………………………….. 45 Pillar Four: Partnerships for Sustainability…………………………………….. 48 SDG 5: Empowering Women…………………………………………… 49 SDG 16: Peace, Justice, Inclusive Societies, Good Governance 53 SDG 17: Partnerships for the SDGs……………………………………. 57 Section Three: Pathways to 2030………………………………………………………….. 61 Annexes…………………………………………………………………………………………. 63 Annex A: Indicators………………………………………………………………… 64 Annex B: Bibliography……………………………………………………………… 94 Annex C: Members of the SDG Working Groups……………………………… 98 0iv Executive Summary Introduction Palau envisages happy, healthy, and purposeful lives supported by the Prosperity Pillar (SDGs 1, 8, 9, 10) Palau actively participated in formulating the 2030 characterized by equitable, inclusive, and sustainable Agenda for Sustainable Development. Accordingly, Pa- growth in harmony with nature – the Planet Pillar lau welcomes the Voluntary National Review (VNR) (SDGs 6, 7, 12, 13, 14, 15). The fourth pillar, Partner- process as an opportunity to reflect on achievements ships and Governance (SDGs 5, 16, 17) reflects the in- and acknowledge vulnerabilities while accelerating terdependence of all pillars and the continuing need for progress toward a global development paradigm cha- effective governance and partnerships both domestic racterized by resilience, sustainability, and equity – an and international. Along the path to 2030, Palau identi- Era of Sustainable Development. fies challenges in closing gaps, improving quality, and Over the 25 years since independence, as a small island enhancing resilience – especially climate resilience. but large ocean state, Palau has established governance and infrastructure supportive of modern nationhood Closing gaps: There are many SDG targets that Palau is and evolved from a low-income country in 1994 to a on track to realize but for which additional effort will be high-income country in 2017. Palau achieved seven of needed to maintain good progress. Having achieved the eight MDGs and has played a leadership role - glo- universal education, more is needed to ensure quality bally and locally - in safeguarding the environment for education for a globalized future (Target 4.1). Having future generations. Other achievements include univer- achieved universal access to water, more is needed to sal access to quality health care and education, reduc- ensure safety and drought resilience (Target 6.1). Hav- tion of poverty amidst a growing economy, a sustaina- ing created a national network of marine protected bly financed nationwide network of protected areas, areas, more is needed to protect especially sensitive and enduring regional and global partnerships. None- ecosystems still underrepresented in the network such theless, challenges remain due to vulnerabilities as a as mangroves (Target 14.5), to conserve near-shore fish small island developing state, global economic forces, stocks (SDG 14.4), and to sustainably manage terrestrial and climate change. ecosystems while achieving food security (Targets 2.3 and 2.4) and inclusive economic growth (Target 8.5) in Means of Implementation harmony with nature. Palau has embraced the SDGs at the highest political Improving quality: Having achieved basic services, level. After mapping global targets and indicators Palau now strives to improve quality. No one goes hun- against domestic priorities, Palau identifies 95 targets gry but many do not enjoy a nutritionally optimal diet that comprise the national SDGs framework. The 2019 and as a nation, Palau is overly dependent on food im- VNR presents a baseline report against this national ports resulting in dangerous insecurities (Target 2.2). framework and outlines a pathway to 2030 and Everyone enjoys modern energy, but Palau aspires to- beyond. Next steps include integration of the nationa- ward modern renewable energy (Targets 7.1 and 7.2). lized SDGs into planning and budgeting frameworks to Palau has built roads but aspires to complete land facilitate monitoring and timely implementation while transportation infrastructure incorporating sidewalks building ownership of the SDGs at the grassroots. and public transport and a marine transportation sys- tem powered by renewable energy (Target 9.1). Sustainable Development Building resilience: Climate change, and associated Palau’s sustainable development lies at the intersection disaster risks, impact all aspects of life and without of four interlocking pillars – people, prosperity, planet, climate-informed development threaten Palau’s health, and partnerships. In the People Pillar (SDGs 2, 3, 4, 11) culture, economy, infrastructure, and environment. 1