Abstract

Ever since Captain Wilson was shipwrecked on Ulong Reef foreigners have continued to visit the islands of Palau for one purpose or another. The most recent influx of foreigners to Palau has consisted of guest work ers. The 1995 census put the number of guest workers and their depen dents at 4,717, and Labor Office statistics showed 5,171 as of April 1998 (CoPopChi 1997, 1). With a total population of slightly over 17,2x5 in 1995, this represents an appreciable portion of Palau's residents (Anasta cio 1998). The large and growing number of guest workers in Palau is raising a great deal of concern among indigenous Palauans, who for the most part are beginning to feel crowded and alienated in their own islands. It also raises a range of important issues that must be addressed if Palau is to get a grip on its long-run economic and political development. Nevertheless, indigenous Palauans are cognizant of the advantages of a large work force, some of which are discussed here. Palau is following a trend in infrastructure development experienced first in Guam and more recently in the Commonwealth of the Northern Mariana Islands. This construction boom, fueled by an expanding tourism industry, has been made possible by the availability of cheap labor from the nearby Philippines. An inspection of local contractors would show a labor force consisting mainly of Filipino workers in all construction trades, from skilled workers in masonry, carpentry, electrical, and plumbing all the way down to unskilled laborers. This has brought about a rapid growth in high-rise buildings, such as the Palasia Hotel and the West Ben Franklin Store, which did not exist until recently. Asians recruited to fish Palau's waters have also contributed to eco nomic growth. Palau's tuna industry was launched in the 1960s with the

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