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East Timor
>> Regional Overview >> East Timor Overview 
Summary Tables
Program Summary
Previous Years' Activities
2001Last updated: 54
Introduction
East Timor stands at a crossroads. After 450 years of Portuguese rule and 25 years under the Indonesians, the East Timorese people were given the opportunity to decide their future in an August 1999 referendum. Nearly 80% chose independence over greater autonomy within Indonesia. The referendum sparked violence, marked by human rights violations among pro-integration militias sponsored by the Indonesian army, who were soon joined by army units. More than 75% of the population was displaced, thousands were killed and the majority of the homes, public buildings, and essential utilities were destroyed. Literally from the ashes, the 770,000 people of this tiny country are struggling to craft a new nation that will represent their aspirations for freedom, democracy and justice. The U.S. assistance program is part of a multi-donor effort to support East Timor's transition to democracy.
Development Challenge
The United Nations Transitional Authority for East Timor (UNTAET) now governs the country, and will continue to do so until early 2002. UN peacekeeping forces maintain a fragile balance among the numerous political factions and a civilian population that wants reconciliation with justice. International donors are helping the Timorese create new institutions and a society that is prepared for the challenges of statehood. The obstacles are daunting: high illiteracy, the legacy of Portuguese and Indonesian rule, geographic isolation, limited economic growth opportunities, a lack of basic infrastructure and a severe shortage of public administration professionals necessary to assume management of the country. In August 2001, East Timor will again go to the polls, this time to vote for a Constituent Assembly which will be responsible for drafting a constitution and deciding the future shape of this newly independent nation.
USAID, primarily through the Office of Transition Initiatives (OTI), provided timely and essential support in the aftermath of the August 1999 referendum, and has focused on civil society strengthening, community stabilization, and economic recovery through support for East Timor's coffee industry. The East Timorese generally view the USAID program as particularly efficient and even-handed. U.S. credibility and projected levels of USAID assistance through 2003 will enable the United States to continue to play a key role in the process of nation building.
Other Donors
In December 1999, over 50 countries and international agencies pledged $522 million in bilateral and multilateral development and humanitarian assistance over a period of three years. In June 2000, donors pledged their continued support for East Timor with substantial funds for the country's reconstruction and development and the administration of the first East Timor government. Donors agreed to donate to two trust funds-a World Bank-administered trust fund for East Timor (TFET) for reconstruction projects in all sectors, and a consolidated fund for East Timor (CFET), administered by UNTAET. The CFET fund pays for the administrative costs of government and for projects that will develop the capacity of the East Timorese to play an active role in government and guide the future direction of the new nation. Decisions regarding the use of both trust funds are made in collaboration with a consultative council of East Timorese representatives. The trust funds are supplemented by bilaterally-funded activities in various sectors. Preparations are now underway for the next donor meeting, which will take place in June 2001 in Canberra, Australia. Concerted attention to donor coordination will be essential for effective utilization of assistance to address East Timor's vast development needs.
FY 2002 Program
USAID will maintain programmatic flexibility within an extremely fluid political and social environment. USAID is revising its East Timor strategy for FY 2002 in light of projected funding increases above previous planning levels over the next three years. In FY 2002, USAID will focus on strengthening democratic institutions in the post-election period and supporting East Timor's coffee industry to promote economic growth and generate employment. Through OTI, USAID will continue to foster the development of civil society in East Timor.
USAID will support East Timor's transition to full independence by strengthening democratic institutions. Five grantees are currently engaged in a broad range of activities to prepare for the Consultative Assembly elections scheduled for August 2001. Given the importance of disseminating and explaining election results and galvanizing public support for new leaders and institutions, these projects will continue in the critical post-election period. USAID recently completed an assessment to identify potential democracy programs in East Timor, which will guide program planning for FY 2002 and for the next several years. The assessment's recommendations include support for constitution drafting, governance, justice sector institutions, and civil society outside the capital of Dili. These recommendations will be fleshed out and incorporated into the overall East Timor Strategy that is currently under development.
While planning to phase out its operations in calendar year 2002, OTI continues to support East Timorese civil society and independent media with small, targeted grants. FY 2002 funding will support OTI activities and incorporate OTI's network of and experience working with local NGOs into other aspects of USAID's strategy.
USAID will continue to support the Cooperative Coffee Timor (CCT) through the National Cooperative Business Association in FY 2002. USAID funding supports investment in equipment and facilities; training for East Timorese managers in bookkeeping, management, and other business skills; and the startup of health clinics in coffee growing regions to serve cooperative members and their families. U. S. assistance is helping prepare the East Timorese cooperative members for full ownership of CCT, including responsibility for all aspects of harvesting, production, marketing and selling to the international specialty coffee market. In FY 2002, the coffee project will open an additional two health clinics, bringing the total number to six. The project will also support small retail outlets in rural areas of East Timor to further stimulate economic growth, as well as conduct pilot studies of other cash crops such as vanilla and pepper. By the next harvest season, beginning in May 2002, the project anticipates working with 100,000 coffee farmers and another 4,000 seasonal workers in the processing and preparation for export of select organic coffees for world markets.
One critical area in which USAID will begin working in FY 2002 is HIV/AIDS prevention. There is currently little information about the scope of the HIV/AIDS problem in East Timor. USAID will coordinate with UNTAET efforts to study the extent of the problem and design an appropriate bridging response that can be adopted and developed further by other donors.
Since choosing independence, the East Timorese people have made clear that they want to establish a nation that is truly their own. As one of the first bilateral aid agencies to establish a presence in Dili, USAID earned the trust and respect of many Timorese by working hand-in-hand with Timorese organizations to identify targets of assistance and design practical and effective activities. This approach will be replicated in USAID's future activities and in the strategy for the next several years. As OTI prepares to phase out its activities, USAID's bilateral activities will learn from OTI's unique experience in responding to emerging problems or opportunities. Ongoing programs may need to be adjusted, or new activities launched, to respond to the changing political environment.
Activity Data Sheets
- 472-001 Revitalization of the Local Economy
- 472-002 Selected Development Needs Addressed
- 472-003 Democratic Development Strengthened
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
