linguistic:paraphrasing
Political economy

In the view of Islands Society president Michael Walsh, Palau is a key example of the successes of modern state-building in the Indo-Pacific region. It has successfully transitioned peacefully from colonial rule to full admission to the United Nations. Palau has maintained strong foreign relations with its neighbors in its region of Oceania. There have also been pushes for Palau to have observer status to the ASEAN as a demonstration of its growing influence in the region. However, Palau's peaceful transition to fully autonomous sovereign state is not without debate.

Palau is hugely reliant on international aid, as demonstrated by President Surangel Whipps Jr address to the UN General Assembly in 2021. American influence has led some to contest that there are challenges to its sovereignty with its reliance on the American military under the Compact of Free Association, although not officially designated a de facto protectorate or otherwise. American influence has resulted in huge changes to Palau's society, economy, and political processes, and as such Palau may not yet be seen as a fully independent state or a fully realized success of modern state-building.