Report No: ACS18457 v2 Democratic Republic of Timor-Leste Public Disclosure Authorized Oecusse Economic and Trade potential VOLUME I: OVERVIEW OF OECUSSE TODAY & LONG TERM POTENTIAL VOLUME II: DETAILED ANALYSIS AND BACKGROUND DOCUMENTS May 2016 Public Disclosure Authorized GTC02 EAST ASIA AND PACIFIC Public Disclosure Authorized Public Disclosure Authorized Oecusse ZEESM An assessment of Oecusse’s current state and its potential VOLUME II – DETAILED ANALYSIS OF OECUSSE Map Source: 2 F. Durand, Internet 66 67 TABLE OF CONTENTS VOLUME II: DETAILED ANALYSIS OF OECUSSE ....................................................................... 1 CHAPTER 3: Living standards ............................................................................................................. 1 3.1 Introduction 1 3.2 Key findings 1 3.3 Analysis of specific dimensions of wellbeing 2 3.3.1 Population ......................................................................................................................................................... 2 3.3.2 Education .......................................................................................................................................................... 3 3.3.3 Employment ..................................................................................................................................................... 6 3.3.4 Housing .............................................................................................................................................................. 7 3.3.5 Wealth .............................................................................................................................................................. 10 3.3.6 Agriculture ................................................................................................................................................... 12 3.3.7 Health ............................................................................................................................................................... 12 3.3.8 Crime and Safety ............................................................................................................................................ 13 3.3.9 Social Networks .............................................................................................................................................. 14 3.3.10 Facilities and Social Security ....................................................................................................................... 17 3.3.11 Government Spending ................................................................................................................................ 20 CHAPTER 4: Agriculture .................................................................................................................... 25 4.1 Introduction 25 4.2 Natural and Human Resources 25 4.2.1 Land Resources .............................................................................................................................................. 26 4.2.2 Water Resources ............................................................................................................................................. 29 4.2.3 Forest Resources ............................................................................................................................................ 31 4.2.4 Farming Households ..................................................................................................................................... 31 4.2.5 Livestock Populations ................................................................................................................................... 33 4.2.6 Public Sector Resources and Budgets ......................................................................................................... 33 4.2.7 Connectivity .................................................................................................................................................... 34 4.2.8 Support from Civil Society ........................................................................................................................... 35 4.2.9 Social Cohesion .............................................................................................................................................. 35 4.3 Existing Agriculture Production: What are the main products produced in Oecusse and what are the production costs? 36 4.3.1 Introduction .................................................................................................................................................... 36 4.3.2 Crop Production ............................................................................................................................................. 36 68 4.3.4 Livestock .......................................................................................................................................................... 41 4.3.5 Forestry and Fisheries ................................................................................................................................... 41 4.3.6 Crop and Livestock Production Costs ........................................................................................................ 43 4.4 Constraints to Existing Production: What are the primary constraints to expansion of agriculture production in Oecusse? 54 4.4.1 Agriculture Scale and Aggregation Problems ............................................................................................ 54 4.4.2 Access to Land for “Commercial” Agriculture ......................................................................................... 54 4.4.3 Skills and Techniques .................................................................................................................................... 54 4.4.4 Availability of Quality Inputs ....................................................................................................................... 55 4.4.5 On-farm Storage ............................................................................................................................................. 55 4.4.6 Irrigation .......................................................................................................................................................... 56 4.4.7 Roaming Livestock ........................................................................................................................................ 60 4.4.8 Lack of Reliable Planning Data .................................................................................................................... 60 4.5 Factor Costs: How hard is it for Oecusse to be competitive? 60 4.6 The potential of agriculture and how to capture it 63 4.6.1 Agriculture Potential ...................................................................................................................................... 63 4.6.2 Strategic Approach to Agriculture Development ..................................................................................... 64 4.6.3 The Future for Oecusse’s Agriculture Sector ............................................................................................ 67 4.6.4 Possible OADP .............................................................................................................................................. 68 4.6.7 Preliminary Analyses ...................................................................................................................................... 73 4.7 Conclusions 80 CHAPTER 5: Transport Corridor ........................................................................................................ 81 5.1 Introduction 81 5.2 Procedures and Practical Experience. 82 5.2.1 Visa procedure to visit Indonesia ................................................................................................................ 82 5.2.2 Visa procedure to visit Timor-Leste ........................................................................................................... 82 5.2.3 Practical experience of obtaining a visa to Indonesia............................................................................... 82 5.2.4 Procedures for obtaining a vehicle permit ................................................................................................. 83 5.2.5 Practical experience of vehicle crossing...................................................................................................... 84 5.2.6 A partial legal basis exists for a Transit Corridor solution ...................................................................... 85 5.2 Analysis of Time and Costs of Delivery based on Routes 86 5.3 Recommendations 88 CHAPTER 6: Migration ...................................................................................................................... 90 6.1 Introduction 90 69 6.2 Current Migration Dynamics 90 6.2.1 Internal Migration .......................................................................................................................................... 90 6.2.2 International migration .................................................................................................................................. 92 6.2.3 Remittances ..................................................................................................................................................... 93 6.3 Oecusse Special Social