Book excerpt: The government and the people of the Republic of Palau have been working with the Asian Development Bank (ADB) since 2005. Since Palau is one of ADB's newest members, ADB conducted an extensive analysis of the constraints to development before agreeing on the country partnership strategy with the government in 2009. The strategy focuses on improving public sector effectiveness to meet the government's fiscal strategy, supporting private sector development, reforming the water and sanitation sector, and addressing the impact of climate change. In support of this strategy, Palau has received two loans amounting $16.0 million and five technical assistance projects for a total of $3.3 million.