How did Japanese rule affect Palau’s economy and population?

During the period of Japanese administration, which began after the Japanese navy expelled the Germans at the start of World War I, Palau experienced significant changes in both its economy and population demographics.1

• Economy: The Japanese period is locally remembered as a time of order and economic development. During this era, the foundations for modern infrastructure and services were established, including a vocational school in the 1920s that eventually became the Palau Community College.12
• Population: The demographic landscape shifted significantly under Japanese rule. By 1936, the indigenous Palauan people had become a marginal minority within their own islands due to the influx of Japanese settlers and administrative personnel.1

While this era is often associated with development, it is important to acknowledge that the subsequent struggle for control of the islands during World War II proved to be socially destabilizing and confusing for the Palauan people.1