EAST TIMOR MOVES FROM EMERGENCY
RECONSTRUCTION TO DEVELOPMENT MODE

Two months ahead of East Timor’s election for a Constituent Assembly, twenty-nine countries met in Canberra on 14-15 June with the East Timor Transitional Administration, International Financial Institutions, UN Agencies and NGOs, to discuss progress towards independence. The meeting was co-chaired by UN Transitional Administrator Sergio Vieira de Mello and World Bank Vice-President for East Asia and the Pacific Jemal-ud-din Kassum. The meeting focused on key issues affecting the political transition, the establishment of strong state institutions, fiscal sustainability and other challenges for East Timor’s economic and social development. Donor countries expressed their satisfaction that the political process is broadly on track. Over 90 per cent of the population has been registered, civic and voter education has been launched, 14 political parties have registered to date and Constitutional Commissions are underway. Donors also emphasized the need to ensure a smooth transition to independence during the election campaign period and beyond the Constituent Assembly elections on 30 August, and the importance of the continuation of service delivery at the time of the handover. “We are well on track for free democratic elections on August 30th, in a stable and peaceful environment,” said José Ramos-Horta, Cabinet Member for Foreign Affairs.

Developing an efficient and effective public administration was acknowledged as the highest priority. This involves not only providing East Timorese civil servants with the necessary skills and competence but also strengthening key government institutions. Transitional Administrator, Sergio Vieira de Mello, underlined the need for continued UN support for the civil administration beyond UNTAET’s mandate. Donors also commented on the need to balance the roles of the public and private sectors, and to foster private sector growth as the basis for sound and sustainable economic development. “The Security Council gave UNTAET a colossal job to do and although much will have been achieved by independence, it is clear that much will still remain to be done. Indeed, it is impossible to establish a new administration, democratic institutions, restore public services and revive an economy in just over two years”, Mr Vieira de Mello said. “It is essential that the United Nations remain engaged in the development process. To walk away too soon after independence and see East Timor falter is an untenable proposition, given the resources the international community has invested to date. We want to leave with a job well done”.

Donors endorsed the national budget of East Timor for 2001-02 at a level of US$ 65 million and advocated continued caution and fiscal discipline in future years. The need to move from an emergency reconstruction mode of operation to a longer term development approach was stressed by East Timorese Cabinet members Mari Alkatiri and Father Filomeno Jacob, by National Planning and Development Agency Head Emilia Pires, and endorsed by all participants. Donors stressed the necessity to base the poverty reduction strategy on a sound medium term expenditure framework, and to balance. World Bank Vice-President for East Asia and the Pacific, Jemal-ud-din Kassum, stressed that “now that much visible progress has been achieved in the reconstruction of East Timor, it is time to move to a long-term development strategy, building the foundations for sustained growth and poverty reduction, and ensuring sound management of East Timor’s finances in the future.”

Donors contributing to the World Bank administered Trust Fund for East Timor (TFET) also discussed TFET progress and endorsed TFET work plans for the July-December 2001 period in a Donor Council meeting held on 13 June 2001. Donors noted sustained progress in reconstruction activities and welcomed efforts undertaken to initiate medium-term development planning. This international event follows meetings in Tokyo (December 1999), Lisbon (June 2000), Brussels (December 2000) and Dili (March 2001). During the course of the main meeting, the Government of Norway offered to host the next Donors’ Meeting for East Timor scheduled for December.