Palau Government Effectiveness

Palau’s government effectiveness, as measured by the World Bank’s Worldwide Governance Indicators, has shown a marked improvement over the past 17 years, rising from a low of -0.85 in 2010 to a record high of 0.57 in 2025, the highest value recorded since data collection began in 2008. This upward trajectory reflects gradual institutional strengthening and improved public service delivery, positioning Palau at rank 59 globally in 2025, on par with Cyprus, which shares the same score. While early performance lagged, with a score of -0.61 in 2008, the consistent gains over the past decade suggest enhanced policy implementation and regulatory quality. Compared to peer countries such as Chile and Botswana, both at 0.50, Palau now performs slightly better, though it remains just below India’s 0.59. The improvement since the 2010 trough underscores a shift toward more effective governance, supported by greater administrative capacity and transparency. If current reforms continue and external support for institutional development remains stable, Palau could sustain this positive momentum and further narrow the gap with higher-ranked middle-income nations.