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2011 Report on International Engagement in Fragile States DEMOCRATIC REPUBLIC of TIMOR-LESTE

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2011 Report on International Engagement in Fragile States DEMOCRATIC REPUBLIC of TIMOR-LESTE 2011 REPORT ON INTERNATIONAL ENGAGEMENT IN FRAGILE STATES DEMOCRATIC REPUBLIC OF TIMOR-LESTE 2011 REPORT ON INTERNATIONAL ENGAGEMENT IN FRAGILE STATES DEMOCRATIC REPUBLIC OF TIMOR-LESTE This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. PLEASE CITE THIS PUBLICATION AS: OECD (2011), 2011 Report on International Engagement in Fragile States: Democratic Republic of Timor-Leste, OECD Publishing. Photo credit: Cover © Dreamstime/shutter1970 Corrigenda to OECD publications may be found online at: www.oecd.org/publishing/corrigenda © OECD 2011 You can copy, download or print OECD content for you own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgement of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. FOREWORD SINCE THE PUBLICATION OF TIMOR-LESTE’S FRAGILE STATES REPORT IN 2009, Timor-Leste has continued to establish itself as a model for post-conflict development. Weathering crises that would challenge even the most stable of governments, we have achieved unprecedented development gains and emerged as a global voice for fragile states around the world. As the Paris Declaration and Accra Agenda have stated, a new paradigm in aid organisation and distribution is essential to aid effectiveness and here in Timor-Leste we have fully embraced this shift. Confident that our experiences are relevant to this dialogue, our country has spearheaded the g7+ in an effort to give a voice to fragile states based on their experiences. Central to Timor-Leste’s success has been our recent wealth as a result of oil and gas deposits and the initial approach to development focused on achieving realisable short-term objectives in partnership with Development Partners. As these objectives have been achieved over time our country is now preparing to transition to a more long term Strategic Development Plan (SDP). Short-term objectives have been achieved through a mechanism known as the National Priorities Process (NPP). The NPP has encouraged dialogue between the government, development partners and civil society, which has resulted in priorities that more adequately meet the needs and concerns of all stakeholders. This close collaboration has helped Timor-Leste achieve unprecedented double digit growth since 2008, a 9% decrease in poverty, and significant improvements in the health and education sectors. Oil and gas revenues have provided Timor-Leste with monetary resources that have allowed for accelerated growth, but also required accountability to citizens. History has shown that fragile states continually struggle with corruption that undermines institutions and government legitimacy. Consequently, the government of Timor-Leste has attempted to combat this by actively adopting tools that encourage transparency. Currently, the country is one of eleven fully compliant countries in the Extractive Industries Transparency Initiative (EITI), which subscribes to a global standard of transparency in administering natural resource revenues in a transparent way. As Timor-Leste transitions to the long term SDP the need for concrete adherence to the principles of the Paris Declaration and Accra agenda has grown more acute. Harmony between governments and development partners is necessary to achieve goals that meet the needs identified by host governments. We hope that that the 2011 Survey for Monitoring Implementation of the Fragile States Principles will elaborate further on how the international community can promote national ownership and improved accountability for aid. H.E. Emilia Pires Minister of Finance Democratic Republic of Timor-Leste 2011 REPORT ON INTERNATIONAL ENGAGEMENT IN FRAGILE STATES - DEMOCRATIC REPUBLIC OF TIMOR-LESTE - © OECD 2011 3 4 2011 REPORT ON INTERNATIONAL ENGAGEMENT IN FRAGILE STATES - DEMOCRATIC REPUBLIC OF TIMOR-LESTE - © OECD 2011 ACKNOWLEDGEMENTS THIS COUNTRY CHAPTER summarises the findings of the 2011 Fragile States Principles Monitoring Survey and the 2011 Survey on Monitoring the Paris Declaration in Timor-Leste, which are supported by the Organisation for Economic Co-operation and Development (OECD). This chapter was prepared by Mr. Gregory Wilson, under the responsibility of the National Co-ordinator, Mr. Helder da Costa and Mr. Leigh Mitchell (National Directorate for Aid Effectiveness, Ministry of Finance), and with support from the International Contact Points for the Survey, Ms. Jemal Sharah (Counsellor, AusAID) and Ms. Cao Lin (Assistant Country Director, Poverty Reduction and Environment Unit, United Nations Development Programme). The Country Chapter was independently peer reviewed by Mr. Luis Constantino (Country Manager, World Bank Timor-Leste), Mr. Cillian Nolan (International Crisis Group) and the OECD, which also contributed to the data and statistical annex. This chapter, originally drafted in English, was edited by Ms. Sally Hinchcliffe (consultant) under the guidance of Mr. James Eberlein and Mr. Nezar Tamine (OECD). The executive summary, which is also available in French, was translated by Ms. Juliette Lindsay (consultant). The layout was designed by Mr. James Eberlein. This chapter draws on the multi-stakeholder consultation held on 17 March 2011 in Dili, Timor-Leste, which was facilitated by Mr. Rui Gomes (Assistant Country Director, Pro-poor Policy Unit, UNDP); and interviews and focus group discussions conducted by Mr. Gregory Wilson (consultant). This incorporates the analysis of development partner questionnaires, and comments received on the first draft. As such, it reflects the views of key stakeholders in Timor-Leste rather than those of the author or the OECD. The Government of Timor-Leste and the OECD wish to thank all the national and international stakeholders who have contributed to the survey process. In particular the National Directorate for Aid Effectiveness would like to thank Sr. Jose Abilio, Felicia Carvalho, Felix Piedade, Mena Savio, Lisette Fatima Soares, Arlindo Monteiro, Jose Abilio, Anabella Magno, Gaudencio Soares, Bonifacio Belo, Dinorah Granadeiro and FONGTIL, Luis Ximenes and Sarah Dewhurst, Edward Rees, Jenny Chao, Gabriel Schickel, Matthias Leitner, Masaru Todoroki, Charlie Scheiner and the staff at OECD for their assistance in compiling this report. This report could not have been prepared without the leadership and valuable inputs and views contributed by government, the international community, civil society and other stakeholders in Timor-Leste. The second round of the Fragile States Principles Monitoring Survey (2011) measures progress of on the application of the FSP over time. The 2011 Survey on Monitoring the Paris Declaration follows previous surveys conducted in 2006 and 2008,1 and is critical in determining whether the targets set for 2010 in the Paris Declaration on Aid Effectiveness have been met. The results of both surveys will be presented at the Fourth High Level Forum on Aid Effectiveness in Busan, Korea, 30 November to 1 December 2011. It is hoped that the findings summarised in this report will help strengthen international engagement and aid effectiveness in Timor-Leste and could serve to strengthen existing dialogue or ongoing processes in- country over the next several years. n 1 2011 was the first year Timor-Leste participated in the Survey on Monitoring the Paris Declaration. 2011 REPORT ON INTERNATIONAL ENGAGEMENT IN FRAGILE STATES - DEMOCRATIC REPUBLIC OF TIMOR-LESTE - © OECD 2011 5 6 2011 REPORT ON INTERNATIONAL ENGAGEMENT IN FRAGILE STATES - DEMOCRATIC REPUBLIC OF TIMOR-LESTE - © OECD 2011 TABLE OF CONTENTS Acronyms and abbreviations ������������������������������������������������������������������������������������������� 11 Executive Summary ���������������������������������������������������������������������������������������������������������15 Introduction �������������������������������������������������������������������������������������������������������������������� 23 PRINCIPLE 1 Take context as the starting point ����������������������������������������������������������������������������������� 25 PRINCIPLE 2 Do no harm �������������������������������������������������������������������������������������������������������������������� 29 PRINCIPLE 3 Focus on statebuilding as the central objective ���������������������������������������������������������������� 33 PRINCIPLE 4 Prioritise prevention �������������������������������������������������������������������������������������������������������� 37 PRINCIPLE 5 Recognise the links between political, security and development objectives �������������������� 41 PRINCIPLE 6 Promote non-discrimination as a basis for inclusive and stable societies �������������������������� 43 PRINCIPLE 7 Align with local priorities in different ways in different contexts ������������������������������������ 45 PRINCIPLE 8 Agree on practical co-ordination mechanisms................................................................
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