timor leste challenges of strategic development and change

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Timor-Leste: challenges of strategic development and change Agio Pereira East Timor became known worldwide because of Indonesian invasion and occupation in 1975. Through the United Nations and solidarity movements around the world, mainly made up of concerned citizens of various countries, the situation in the territory became one of the biggest problems confronted by the most powerful of East Asian countries, the Republic of Indonesia. This led the late Indonesian Foreign Minister, Ali Alatas, to describe the East Timor situation as the sharp stone in Indonesian shoes. This sharp stone was removed on the 30 August 1999 when, under the auspices of the United Nations, a referendum was held to decide on the future of the territory. At this referendum, the vast majority of the people of East Timor voted for independence. This vote took place soon after the late President Suharto stood away from the helm of Indonesia and replaced by his Vice President Habibie. A new era began, not only for East Timor, but also for Indonesia. And so, almost at the same time, both East Timor and Indonesia began their path towards liberal democracy, with the difference being that East Timor had to start by building, from scratch, all the institutions required to successfully run a sovereign Nation- State. 1

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Timor-Leste: challenges of strategic development andchange

Agio Pereira

East Timor became known worldwide because of Indonesian invasion

and occupation in 1975. Through the United Nations and solidarity

movements around the world, mainly made up of concerned citizens

of various countries, the situation in the territory became one

of the biggest problems confronted by the most powerful of East

Asian countries, the Republic of Indonesia. This led the late

Indonesian Foreign Minister, Ali Alatas, to describe the East

Timor situation as the sharp stone in Indonesian shoes. This sharp

stone was removed on the 30 August 1999 when, under the auspices

of the United Nations, a referendum was held to decide on the

future of the territory. At this referendum, the vast majority of

the people of East Timor voted for independence. This vote took

place soon after the late President Suharto stood away from the

helm of Indonesia and replaced by his Vice President Habibie. A

new era began, not only for East Timor, but also for Indonesia.

And so, almost at the same time, both East Timor and Indonesia

began their path towards liberal democracy, with the difference

being that East Timor had to start by building, from scratch, all

the institutions required to successfully run a sovereign Nation-

State.

1

On independence, Timor-Leste became the official name for East

Timor. This name was adopted on May 20, 2002, with the decision

by the members of the Constituent Assembly established under the

United Nations Transition Administration for East Timor (UNTAET).

This decision was duly reflected in the Constitution of the

Democratic Republic of Timor-Leste. The rationale behind this

name-change was that unlike ‘East Timor’, Timor-Leste would not

be a reference to being the eastern side of the island of Timor,

but that it would rather define a State, the sovereign territory

of a Nation, which encompasses the main land and the islands of

Jaco and Ataúro, as well as the enclave of Oecussi, which is in

West Timor and surrounded by Indonesian territory. In terms of

territory the Democratic Republic of Timor-Leste (DRTL), Section

4 of its Constitution clearly defines that the territory of the

State of the DRTL

“comprises the land surface, the maritime zone and the air spacedemarcated by the national boundaries that historically comprisethe eastern part of Timor Island, the enclave of Oecussi, theisland of Ataúro and the islet of Jaco.” And “The extent andlimits of territorial waters and the exclusive economic zone, andthe rights of East Timor to the adjacent seabed and continentalshelf shall be laid down in the law.” Furthermore, “The Stateshall not alienate any part of the East Timorese territory or therights of sovereignty over the land, without prejudice torectification of borders.”

The name change took place to make it clear that the sovereign

State of Timor-Leste encompasses all the space which historically

2

proven to be part of Timor-Leste and does not allow for

alienation of any of its part. In addition, name change also came

in with the new hope; the hope to succeed in the complex process

of consolidating independence, bearing in mind that sovereign

countries cannot survive only with national flags, currency and a

national anthem. The leadership of Timor-Leste was profoundly

conscious about these challenges; the complex challenge of

peacebuilding, which is to be followed by statebuilding,

particularly within a post-conflict context. Consolidating

independence means, above all, being able to nurture a State with

the capacity to protect national sovereignty as well as to care

for its citizens.

As Timor-Leste began its first steps as a sovereign Nation-State

on May 20 of 2002, its very first embryonic institutions began to

see the light, with mammoth tasks and responsibilities ahead. In

the same way that the Carnation Revolution of Portugal on 25

April 1974 allowed democratic space for colonised peoples to find

their own destiny, the era which began on May 2002 was similarly

embraced with courage and determination, albeit with

uncertainties. A deep sense of pride and identity are what foment

the strength of former colonised peoples. The conviction that ‘we

too can make it’ sparks the latent resilience of human nature and

provides the means to sustain the struggle to be free. This does

not, however, obviate the dilemma of how to respond to the

hierarchy of needs. People need food, housing, schooling and

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medical assistance. Security and progress are also vital because

unless the overall security environment is satisfactory, most of

the other needs may not be met.

Conscious of these needs and the interconnectedness of security

and the well-being of the people, the leadership of the country

adopted ‘national reconciliation’ as a strategic priority. For

instance, reconciliation with the former occupying force, the

Republic of Indonesia, and with Australia, are in the national

interest. Australia was one of the key supporters of the illegal

occupation of East Timor. It had given de juri recognition of

Indonesian sovereignty over East Timor, against all the

provisions of international law. One reason behind Australia’s

bold recognition was oil and gas, which Australia wanted to

extract from the Timor Sea where Portugal, as the de juri

administering power, had claimed ownership. Led by current Prime

Minister Kay Rala Xanana Gusmão, national reconciliation was

pursued at all levels; and debates were begun about legal

immunity for those who committed serious crimes in Timor-Leste.

These were the members of the Indonesian military or TNI, and

militias who enjoyed active support from the TNI during the

occupation and soon after the result of the referendum were made

known by the UN. The country moved forward with national

reconciliation led by Kay Rala Xanana Gusmão, first as the head

of CNRT (Conselho Nacional da Resistência Timorense), and later

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from May 20, 2002, as the very first elected President; and since

2007 as Prime Minister.

National reconciliation was the strategic policy that enabled

national stability, which, in turn, gave the newly established

sovereign Nation-State the chance to consolidate its structures

of governance and decision-making. The President of the Republic,

the National Parliament, the Government and the Judiciary are the

four pillars of sovereignty; and are, ultimately, charged with

the responsibility to ensure the country moves on within an

environment of ongoing peace and sustainable political, economic

and social development. Being not only a new country, but also

one where the majority of the population is made up of young

people, beyond national stability, employment is the critical

factor towards sustaining a peaceful and stable environment -

necessary for the country to grow its economy for the benefit of

the common good.

Since the early days of nationhood, the leadership saw the need

to structure and develop the private sector of the country. This

derives from the fact that the private sector, combined with

foreign investment and effective partnerships with the

Government, is what drives job creation. Because of this, the

weaknesses of the private sector become a national challenge.

During the tenure of the Fourth Constitutional Government (IVCG),

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support for the development of the private sector was focusing on

establishing structures to support business creation and growth.

Elections were held throughout the country to select people to

establish and manage a new national body, the Chamber of Commerce

and Industry. It turned out that the rivalry between the leaders

of the private sector saw two different business umbrella bodies

emerging, making it not that easy to deal with representatives of

the naitonal private sector. Prime Minister Kay Rala Xanana

Gusmão, however, decided to be pragmatic and referred to both

bodies as belonging to Timor-Leste, and deals with both of them

to enhance the capacity of the private sector.

In the current Government, the Fifth Constitutional Government

(VCG), still under the leadership of Prime Minster Xanana Gusmão,

a Secretary of State has been specially charged with providing

political and practical support to the development of the private

sector, as the second phase of the development of this

strategically key national sector. Another Secretary of State has

also been charged with the responsibility of institutional

strengthening or the targeted capacity building of Government

institutions. The goal is to focus on the system, structure and

organisation and human resources required to make institutions

more responsive to the needs of the population, as well as

governance and private sector requirements.

6

Since 2011, the IVCG decided to concentrate on three major goals.

The first one was food security; the second was service provision

and the third was public administration professionalism. Food

security was obviously a priority, because in 2007 the world

faced a shortage of food supply. Timor-Leste, as a fledgling

democracy living on subsistence agriculture risked becoming a

victim of such a global crisis. A second concern was, the nexus

between food security and national stability in a post-conflict

environment, where institutions are still in their process of

consolidation. Access to food supply enables families to sustain

themselves and, therefore, to face the challenges of nation

building. Lacking access to food supply weaken personal and

national security. It follows from there that access to a

reliable food supply does impact on how democracy can flourish

and how the State can be built. As a consequence, freedom from

hunger is now on top of the list of priorities and is the focus

of a national and international campaign. This campaign, based on

the Zero Hunger Challenge initiative was launched in Díli last

January the 9th. It was a major event held in the Timorese

National Parliament. The launch was jointly undertaken by Prime

Minister Kay Rala Xanana Gusmão, as President of the United

Nations Economic Commission for Asia and Pacific (UNESCAP) and

Her Royal Highness, Princess Maha Chakri Sirindon from the

Kingdom of Thailand. It focuses on malnutrition and improving

governance in this area. Food insecurity has proved endemic in

early post-colonial periods as former colonial powers generally

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made sure colonised peoples were not sufficiently fed and strong

to challenge their power of oppression. Politically, ‘divide and

conquer’ was the foundation of control. The colonial history of

Timor-Leste was no different. The other side of the coin for

freedom from hunger is access to food supply; and the next focus

is on the nutritional quality of food.

As mentioned above, effective service provision was the second

priority. The parameters of this priority range from efficiency

in processing payments to the population, to the respect for the

governance system by the people, which ultimately nurtures their

trust in the institutions of their State. Effective service

provision also allows for a more functional and productive

private sector because the processes of company registration,

taxation and execution of major projects can become more

transparent and produce better results for the general

population. In addition, payment of the subsidies to the elderly,

the handicapped and veterans becomes more efficient as the

service delivery of the State to meet the needs of the people

improves. The elderly, for example, cannot stand in long queues

for hours and cannot travel to the capital only to receive their

monthly subsidy. The system has to go and reach them without

requiring them to travel. The same applies to the handicapped.

Efficient delivery of transfer payments ultimately contributes

towards building the sense of dignity and harmony within

families, particularly those in the rural areas.

8

Professionalism in the public administration is a national goal

and a long-term one. The apparatus of the public service was, to

some extent, nurtured by public servants educated in the old

system of Suharto’s Indonesia, whereby many of the public service

leaders came from the same college for public service education.

There was also the need for reform, with a particular emphasis on

the reform of attitudes. The need for such a reform also derives

from the fact that Timor-Leste has no history of independence as

a sovereign country. Colonialism nurtures dependency, and frowns

upon initiative and self-reliance. Changing attitudes means, in

this context, becoming free from hand-outs, free from expecting

most things to be done by others; and free from the excessive

expectation that the Government and other countries can help us.

And so, we must change our attitudes so that we strive for the

highest productivity possible. In short, this equates to being in

charge, taking control of one’s own destiny.

Furthermore, professionalism of the public service, which bears

ethical and discipline dimensions, inherently also means

embracing and valuing the duty to serve and not to expect hand-

outs from those who need your service. Serving the people, the

customers, the private sector, the country as a whole, becomes

your motive, your goal, the foundation of personal pride. It goes

without saying that this professionalism will impact directly on

service provision and efficiency in access to food supply as

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well. It should be noted that private sector professionalism is

also required because more often than not, the private sector can

stimulate corruption, which in general, can flourish in the area

of customs and immigration services, ports, airports and taxation

authorities. Therefore, public service professionalism impacts

enormously on the efficient financial management of the State,

with particular ramifications for national fiscal capacity.

Lacking such a professionalism means the country’s capacity to

deliver services to its people is permanently compromised.

However, in order to produce results in the above areas, one sine

qua non condition is infrastructure. Without infrastructure, one

cannot expect development of institutions and efficiency of the

public service, regardless of patriotism or the quality of human

resources. In 2009, the Government declared it was the year to

kick-off the process of building infrastructure. A courageous and

bold policy which many thought was a day-dream political move. To

some extent, the skepticism was justified. One reason for

skepticism was because the State was still dealing with problems

relating to national security, including IDPs and the process of

recovering the trust of the people in the National Police and the

Defence Force. In addition, less than a year before, on 11

February 2008, there was the attempt to kill the President of the

Republic, Dr. José Ramos-Horta, who was badly wounded but

survived; while a similar attempt was made against Prime Minister

Kay Rala Xanana Gusmão. Lacking highly specialised expertise and

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skilled labor force may also have contributed to such skepticism.

Nevertheless, by 2009, one can say that most of the factors

affecting national security and stability were successfully

addressed and overcome, thus creating the right condition for the

country to embrace challenges of infrastructure development.

The start of building basic infrastructure for the country could

not wait any longer. If the country was to stimulate growth and

national development, building better roads and bridges,

providing electricity and potable water and sanitation were the

basic conditions for success. Some even said that basic

infrastructure development is the cornerstone of the success of

Statebuilding; to some extent this is true. Without basic

infrastructure, the trust in the nation’s ability to walk on its

own feet can be derailed. Without basic infrastructure, the sense

of pride of the majority of the population can be hindered.

Without basic infrastructure, the quality of living conditions of

the people cannot improve. And without basic infrastructure,

sustained job creation will not be possible. Without

infrastructure access to health service cannot be improved. Last

but not least, without basic infrastructure, quality education,

which is necessary to enhance national productivity, cannot be

developed.

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In 2009, the IVCG also launched what was known as ‘pacote

referendum’; a referendum package, named after the inspirational

vote of the August 30, 1999, referendum, marking its tenth

anniversary. It was meant to be a tool to instigate a sense of

pride among the private sector at a local level, so that

companies in the construction sector could show their ability to

produce results for their respective local population. The

coordinator of this package of construction projects and funding

labeled this program as an important initiative to give an

opportunity to the construction companies in the private sector

to prove themselves. It was acknowledged that while mistakes may

be made, the companies could take responsibility for their work

and stand up again to assume even greater responsibilities for

the nation. ‘Pacote referendo’ was a bold and revolutionary move. It

tested the grounds about transparency of governance and how this

sacrosanct principle should be applied to post-conflict

situations, particularly one like Timor-Leste which was subjected

to war for almost a quarter of a century, before becoming free,

independent and sovereign. Having an initiative such as the

referendum package of construction projects directly managed by

key company owners; and providing opportunities to reasonably

established Timorese companies in many districts, brought about

more trust in the system. Overall, up to eighty per cent of the

projects were completed with satisfactory degree of quality.

12

In the same year, Prime Minister Xanana Gusmão started his work

on the development of the national Strategic Development Plan.

The country needed a matrix to guide its development decisions

over the longer-term. The earlier plan that was instigated by the

United Nations and the Planning Commission foresaw the need for a

new plan in the future that responded to the emerging realities

of the nation. The original plan was not, for all practical

purpose, a strategic development plan; rather it was a vision of

the future, which at the time of transition was a vital tool for

Government to access approaches and begin to think about the

expectations of the people and how best to manage them. Prime

Minister Xanana Gusmão and his Ministry of Finance Emília Pires

were key participants in the production of that vision for the

future. What was needed, however, was not only an update of this

important vision for the future, but a framework to further plan

the key steps for the next 20 years in order to achieve an

integrated development outcome for the country. Much of the

expected initial elements for a strategic development plan were

already included in the 2011 National Budget. For example, the

proposed Fund for the Development of Human Capital and the Fund

for Infrastructure were vital elements for the thinking towards a

Strategic Development Plan. Strategic here means simply a plan

which has long-term implications for the overall development of

the country. Both funds were subsequently endorsed by the

National Parliament and became legally established under the Law

pertaining to the National Budget of 2011.

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The Strategic Development Plan, under the official title “Timor-

Leste – Strategic Development Plan 2011 – 2030”, was endorsed by

the National Parliament on 11 July, 2011. It was launched on the

following day, during the Timor-Leste Development Partners

Meeting (TLDPM) in Díli Convention Centre (DCC). At the launch,

Prime Minister Xanana Gusmão reminded the audience that the

drafting of the Plan “was led by our people, belongs to our

people and reflects the aspirations of our people”. In the

overview of the SDP, reference is made to continuity, as referred

to earlier. It says:

“The Strategic Development Plan provides a vision forTimor-Leste that builds on the foundations we have laiddown since 2002. It is informed by, and incorporates,the vision of the Timorese people in ‘Timor-Leste 2020,Our Nation Our Future’ which formed the basis of the2002 National Development Plan. It also reflects theviews of the thousands of Timorese people whocontributed to the national consultation on the SummaryStrategic Development Plan, From Conflict toProsperity, in 2010. Ongoing consultation and theparticipation and solidarity of the Timorese peoplewill be vital to the successful implementation of theStrategic Development Plan.”

In his speech to the National Parliament, Prime Minister Xanana

Gusmão said that:

“In any evolving process, it is wise to never overlookthe need for ongoing and realist analysis of the

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evolving conditions, its constraints and obstacles, aswell as the small or big steps so far successfullyundertaken. No analysis can be objective without takinginto account these two levels of reality.”

Participation of the people and objective analyses of the process

were fundamental parameters. Being objective means being able to

understand constraints and real obstacles for a plan to be

successfully operationalise, with quality outcomes for the

benefit of the people. Identifying the steps successfully taken

so far is equal part of the objective analysis, but one needs to

focus on the real obstacles for the successful implementation of

any strategic plan, so planning can factor in these ways and

means to mitigate these barrier as well as realistic approach to

manage expectation.

The rationale for the two funds was that, since infrastructure

and human capital development require mid to long-term planning,

it was not possible to achieve either of them properly if they

were determined by a twelve-month budgeting cycle. Instead, there

was a need to establish multi-annual funds so that the projects

and plans could continue to be implemented year-after-year,

without interruption because of the legal constraints inherent in

the annual budget process. The National Parliament understood

this and the majority voted in favour of establishing these two

funds, which have been working well since. The approach was to

centralise Government initiatives in these two areas so that the

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policies of each ministry converge within the funds and that,

managed by respective secretariats, the focus would be on

national needs, rather than the interest of each ministry

independently of what happens in other parts of Government. This

centralisation also allows for better evaluation of the funds’

performance and review of where the decision-making in these two

vital areas is leading the country to. Hundreds of Timorese have

already benefited from the Human Capital Fund and the national

electricity grid also testifies to the success of both funds.

Another factor of interest has been the changing political

landscape in Timor-Leste, which has became a phenomenon debated

nationwide and beyond borders. This includes the shifting

approach of opposition party Fretilin, which was harsh opposition

in the previous Government of Prime Minister Xanana Gusmão.

During that time, of the IVCG, Fretilin positioned itself as an

opaque and effective opposition to the policies of the

Government. However, in the subsequent Government, both Fretilin

and the VCG, decided to accommodate a political arrangement

whereby opposition and Government converge in major policies of

national interest. Such a convergence became consensual

democracy, whereby both the Government and the opposition reach

agreement on major issues pertaining to budgeting for the

country, bearing in mind the long-term impact on national

development as well as effectiveness in the delivery of programs

of the annual governance. This process began at the end of 2012,

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becoming more visible during the 2013 budget debate, where the

rationale for the development of cooperation in politics in

Timor-Leste was articulated. Summing up, it was the beginning of

a new paradigm of national politics, shifting from adversarial

democracy to consensus democracy.

The political system of Timor-Leste is different from the

Westminster system. The Government and the Parliament are

separate entities; autonomous institutions. Members of the

Government are not members of the Parliament. The opposition has

no statutory authority as a shadow government whereby respective

ministers keep an eye on each other, funded by the State, and

have the right to demand information and to be briefed on major

issues. Nevertheless, a common feature is that the opposition is

still the second major political party represented in the

Parliament and, to some degree, is respected and expected to act

as the opposition to the Government in Parliament. In addition,

there is the post-conflict scenario. Within this scenario, there

is a degree of fear of failure in governance and the threat of a

return of instability if there is no success in tackling national

challenges. One of the biggest challenges is job creation.

Bearing in mind that Timor-Leste is a country where, according to

the 2010 national census, there are 82.7 per cent of population

under 39 years of age and only 4.9 per cent are sixty or above,

creating jobs for this young generation is of paramount

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importance, if the country is to succeed in its difficult path

towards consolidation of national independence.

This new national political consensus was tagged by Prime

Minister Xanana Gusmão as ‘the new political conjuncture’. This

means the opposition and the Government, as well as the four

political parties represented in the Parliament work in concert

to elevate the capacity of the country to produce better results.

First, is budget execution; ensuring that the implementation of

the projects of the national budget produce quality products.

Secondly, governance is to occur in which better planning of

programs of line ministries is ensured so that implementation

processes can also lead toward better outcomes. Lastly, there is

more cooperation between the Parliament and the Government, so

that the needs of the Parliament for detailed information about

matters the Parliament sees as vital to enhance the ability of

the Members of the National Parliament to monitor the execution

of the State budget. This means more regular interaction between

the parliamentarians, within the Standing Committee and Plenary

levels, with the relevant ministries, to enhance information

sharing.

Does this consensus approach sacrifice democracy? Not

necessarily. One reason is because, provided that there is a

commitment of the parliamentarians to contribute towards better

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governance, enhancing information sharing of the parliamentarians

improves transparency and responsibility. Governing is a learning

process. Both sides – ministries and parliamentarians - can learn

from each other and build a political environment whereby

cooperation, rather than belligerency, occupies the democratic

space. Secondly, the people of Timor-Leste, having suffered

decades of war, prefer to see their leaders, including the

political parties, behave in ways which reflects the national

mood for democracy – one whereby consensus prevails, rather than

publicly attacking each other, for the sake of political

propaganda and short-term benefits. Thirdly, this political

democratic approach can make the electoral landscape a leveling

playing field whereby not only personalities can influence

voters’ decisions, but also real programs and political maturity

influences voters, particularly the undecided ones, on the voting

day. Lastly, looking at the national or annual budget as one that

belongs to all and not only to those with majority votes in the

Parliament, brings about sharing responsibilities in the

execution process. The Government is responsible for the

successes and failures of the execution of annual budget; but

also, to some extent, this new political conjuncture makes the

opposition also responsible - to some degree. In the end, it is

about national unity processed through liberal democratic lenses;

rather than one-only formula of national unity brought about

because of civil war or imposed by other means.

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This new conjuncture, which some referred to as “incidência

parlamentar”, parliamentary incidence, or, the occurrence of

innovative politics, which may differ from liberal adversarial

democratic behaviour guided by formal voting. This innovative

political behaviour can be structured under the formula whereby

commitment plus responsibility equals results with quality

(C+R=R+Q). The Government which, in spite of benefiting from the

majority of the votes in the Parliament, is committed to work

with the opposition for the sake of, not only producing results

for the country, but ensuring that the results have acceptable

quality. In addition, the Government is obliged to acknowledge

the need to improve the functionality of each ministry, referred

to in Tétum as “hadia-uma-laran”. The purpose of this focus is to

prepare each ministry to face the challenges of each subsequent

year with preparedness to overcome the challenges and move the

country forward. Ultimately, the overreaching goal is to protect

national interest; that the interest of the State (country) ought

to be upheld above all other interests, including those of

political parties or groups. This need cannot be more acute when

one understands that Timor-Leste is still under the developmental

phase of Statebuilding, with complex challenges, which may hinder

the capacity of the State to protect its own sovereignty.

One of the key challenges is to understand hierarchy and to

ensure responsibility is assigned to the person where it is due.

This means understanding the details of the organic law

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establishing the hierarchy of the Government. Another is to

ensure efficient coordination within each ministry. And a third

one is to understand all the existing laws and policies, as well

as new laws about to be adopted to regulate governance; and to

interact effectively with all relevant institutions, to ensure

there are no unnecessary delays in the implementation of

respective ministries’ budget. The fourth one is to humbly accept

that the coalition, which is the majority in the Parliament, and

which established the Government, cannot do it alone. The

Government needs the opposition’s efforts to become more dynamic

and effective. Last but not least, is the challenge of efficient

inter-ministerial coordination. This requires in-depth

understanding of the development programs of each ministry, what

has been done so far and what remains to be done; and, moreover,

whether quality results have been the outcome of what has been

done.

As mentioned above, protecting national interest and sovereignty

is the central purpose for political undertakings embraced by

major political forces. In Timor-Leste this means the political

parties of CNRT and Fretilin. Both see the need to work together

in a concerted manner so to avoid dispersion of energies and

resources, especially when the country is facing serious

challenges of consolidation. This concerted approach is not new

in Timorese national politics. In 1975, Fretilin formed a

21

coalition with its former rival party UDT, although this did not

last long due to a number of factors, not least direct foreign

interference. During the struggle against the illegal Indonesian

occupation, both parties converged again, in an arrangement then

known as ‘convergência nacionalista’ (nationalist convergence). This

too did not last very long, but it helped to stop foreign

interest in dividing the Timorese into opposing camps of rivals.

Still, during the struggle for national liberation, Kay Rala

Xanana Gusmão, conceived effective formulas to unite the people

against a common enemy and succeeded; such as success made it

possible for the people to vote in the August 30, 1999

referendum. Even after that vote, the country was struggling for

unity, particularly, to bring into the camp of independence those

who voted for integration. Xanana Gusmão, as the national leader,

invested all his energies to bring them together, as he did

during the last struggle for national liberation. Hence, this

concerted politics now operating in the Parliament and between

the opposition and Government, is well understood to be of

national interest and will prevail.

The Strategic Development Plan (SDP) will benefit the most from

this consensus. Arguing in the opposite direction, without this

consensus, the SDP has no sufficient political oxygen to stay

alive for long-term. By 2030, the SDP is expected to bring about

the outcomes of the eradication of extreme poverty, the

development of a strong private sector, a diversified non-oil

22

economy and a healthy, well educated and prosperous population.

As a result, Timor-Leste shall enjoy higher income, joining the

ranks of upper middle income countries, with a sustainable

economy. To get there, Timor-Leste is expected to invest in core

infrastructure such as roads, bridges, water and sanitation,

electricity and telecommunications. Seaports and airports will no

longer condemn the shipping industry to bottlenecks. Rural

development and agriculture reforms will help produce higher

yields, a healthy market economy, and self-sufficiency in food. A

strong private sector will emerge, as well as light industries

based on culture and heritage and a thriving tourism sector; all

these to be achieved by having an educated and skilled workforce.

Sixteen years to go, until 2030. By then, current leaders will

not be in the political arena to ensure those outcomes. A new

generation of leaders has to gradually come into the scene to

provide such assurance. Timor-Leste has this new generation.

Change is always needed in every country, whether developing or

developed. Timor-Leste is no different; and it is ready to

embrace change when change is due.

Díli, March 2014

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