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Country profile

 

Timor-Leste is one of the world’s poorest nations, ranking 158th of 179 on the UN’s Human Development Index and with half the population living on less than a dollar a day.  The population of 1.1 million is growing rapidly, at over 3% per annum.   Nearly half of the children are underweight, and only 38% of the population has access to an improved water source.  Forty percent have never attended school.  Despite gradual improvements in government services, only two of the MDGs are currently on track – primary education and gender equality.  The population remains highly vulnerable to disease, natural disaster and conflict. 

 

Timor-Leste has access to substantial oil revenues, which peaked at US$100m per month, but is struggling to translate this into effective development expenditure and non-oil growth.  Three quarters of the population depend on subsistence agriculture, and unemployment may be as high as 50%. 

 

The national development agenda is set out in a Development Vision 2020, but implementation has been disrupted by political volatility.  A National Recovery Strategy was adopted in 2007, following by a National Priorities Process in 2008, with a structure of seven working groups to improve alignment at the sectoral level.  A new medium-term Strategic Development Plan is currently under preparation.  Development planning and aid management are led by the National Directorate of Planning and External Assistance Coordination (NDPEAC) in the Ministry of Planning and Finance. 

 

In 2008, Timor-Leste received a total of US$236.4 million in ODA, with Australia, Japan and Portugal the largest donors.  Aid accounts for around 30% of the national budget.  In a ‘donor-heavy’ environment, the government has been trying to strengthen its leadership over aid coordination.  It chairs annual Timor-Leste Development Partners Meetings, and has created an Aid Effectiveness Directorate in the Ministry of Finance.  Although it has not participated in the Paris Declaration monitoring process, it is piloting the OECD-DAC Principles for Good International Engagement in Fragile States and Situations, and undertakes periodic reviews of implementation. 
 
 

Aid Management & Coordination (4)

  The Millenium Development Goals Report 2009 Timor Leste
  TAGS :    National development plans    Timor-Leste
  Author(s): Government of TL and UNCT
Year: 2009
 
This report present Timor Leste's progress in reaching the MDGs.
 

  Timor-Leste: Managing for results in a fragile post-conflict setting
  TAGS :    managing for results   Fragile situations    Timor-Leste
  Year: 2011
 
Timor-Leste has been focused on the implementation of its national development plan since its independence in 2002. It has a 5-year Roadmap and annual action plans, against which line ministries report on a quarterly basis. The consolidated quarterly reports are distributed to line agencies, donors and other stakeholders. While this increased availability of performance information may in time build a stronger demand for results monitoring, including by parliament and civil society, the case study notes that, for the time being, the demand is mainly from the donor side. Data shortages remain a problem, with administrative data often poor quality and survey data sporadic. The case study lists some modest achievements to date, and notes that Timor Leste is "advancing slowly but steadily along the Managing for Results continuum".
 

  Monitoring the Principles for Good International Engagement in Fragile Situations
  TAGS :    Fragile situations    Timor-Leste
  Year: 2011
 

Timor-Leste is piloting the use of the OECD-DAC’s Principles for Good International Engagement in Fragile States and Situations.  This joint review document examines progress under each of the 10 principles, and includes up to date information on Timor-Leste development planning and aid coordination processes.
 

  Timor-Leste PEFA Assessment
  TAGS :    PEFA & procurement assessments    Timor-Leste
  Author(s): Linpico
Year: 2007
 

This strategic assessment of PFM systems in Timor-Leste looks at the credibility of the budget, its comprehensiveness and transparency, policy-based budgeting, budget execution, accounting and reporting.  It concludes that, while aggregate fiscal discipline is strong and overall budget preparation is handled well, the systems are weak at the strategic allocation of resources and efficient delivery of services.

 
 

Country Systems (0)

Managing for Results (0)

Mutual Accountability (0)

National Plans & Budgets (0)

Stakeholders: Civil Society (0)

Stakeholders: Parliamentarians (0)
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