Palau may now be seen, particularly in the indo-pacific region, as a key example of the successes of modern state building.  It has successfully transitioned peacefully from colonial rule to full admission to the United Nations. There are also 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 nation 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 also 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 also resulted in huge changes to Palau’s society with vast changes to the economy and political processes and as such Palau may not yet be seen as a fully independent state or a fully realised success of modern state-building. 