Regions and Countries

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p. 6 of 18 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program

Country Assistance Plans - East Timor

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II. Country Operational Strategy

A. The Operational Strategy

22. The current situation in East Timor requires urgent, coordinated action by the international community to support reconstruction and long-term development planning, and humanitarian relief. As the regional development bank in the Asia-Pacific region, ADB is positioned to play an important role in assisting East Timor in its development. It is also expected that East Timor will seek membership in ADB at the earliest opportunity.

23. In this context, the primary objectives of ADB support for reconstruction and development in East Timor during the transition period will be to help:

• partnership with the international community for reconstruction during the transition period to independence, including through international support for training and transfer of skills, with programs formulated in partnership with the Timorese people;
• development of new democratic processes, to ensure continuing community participation in reconstruction, and the development of open and responsive government structures;
• development of a government free of corruption, with strong financial controls and a culture of accountability; and
• fostering of economic growth that benefits the poor, with special attention to protecting the most vulnerable in the short term; and developing policies and programs to foster sustainable growth, and improve living standards and social conditions in the medium term.

24. These objectives have been developed taking into account ADB's areas of comparative advantage, particularly in the Pacific, as well as the areas of interest of other aid agencies in assisting East Timor. ADB has participated in all planning and coordination efforts undertaken by the international community since the popular consultation in August 1999, and all ADB activities will be implemented within the framework of UNTAET, which has the power to exercise all legislative and executive authority in East Timor. They will be designed and implemented in full consultation and collaboration with East Timorese counterparts including, as appropriate, the payment of salaries for local participants.

25. ADB, along with other aid agencies, has endorsed four key principles laid down by the East Timorese for the future of East Timor. These principles guide ADB’s operational strategy and program implementation:

• partnership with the international community for reconstruction during the transition period to independence, including through international support for training and transfer of skills, with programs formulated in partnership with the Timorese people;
• development of new democratic processes, to ensure continuing community participation in reconstruction, and the development of open and responsive government structures;
• development of a government free of corruption, with strong financial controls and a culture of accountability; and
• fostering of economic growth that benefits the poor, with special attention to protecting the most vulnerable in the short term; and developing policies and programs to foster sustainable growth, and improve living standards and social conditions in the medium term.

B. Poverty Partnership Agreement

26. A preliminary poverty assessment, supported by the ADB, has been initiated in the country. A more substantial poverty assessment will be undertaken only after the population profile of the country stabilizes. If and when East Timor becomes a member of the ADB, a poverty partnership agreement will be proposed to the elected Government.

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