Regions and Countries

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Country Strategy and Program Update 2003-2004: Timor-Leste

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I. Country Strategy

1. Timor-Leste became an independent nation on 20 May 2002, and a member of the Asian Development Bank (ADB) on 23 July 2002. Timor-Leste’s National Development Plan (NDP) and associated roadmap focus on two development goals: (i) to reduce poverty and (ii) to promote equitable and sustainable economic growth. The Government’s immediate priorities are law and order, justice, the legitimization of local authorities, employment creation, and service delivery for poverty reduction in health, education, and agriculture. In the medium term, the Government will focus on infrastructure development, education and health, and economic recovery. The Government is committed to a market-based economy and emphasizes the importance of foreign investment to stimulate the economy.

2. The framework for ADB's country strategy¹ for Timor-Leste is set out in A Pacific Strategy for the New Millennium², which focuses on three broad strategic objectives: economic management, governance, and public sector reforms, with poverty reduction as a unifying theme. Accordingly, ADB's objective in Timor-Leste is to reduce poverty and improve the quality of life of the people. In view of the Government's current policy to avoid borrowing and the limited availability of grant assistance from ADB, the program is focused on the following areas: (i) improved public infrastructure to support private sector growth and basic social services; (ii) local capacity building for economic and financial management; and (iii) community-level income generation. Appendix 1 sets out a summary statement of strategy.

3. ADB's assistance to Timor-Leste was first articulated in the Country Assistance Plan 2001-2003, East Timor³. This plan was prepared between April and June 2000 in close consultation with the United Nations Transitional Authority in East Timor (UNTAET). Given the emergency conditions that applied at the time, the plan was indicative only and underwent frequent revisions.

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