Poverty Reduction and Achievement of the MDGs

Poverty Reduction

Amongst the many challenges facing Timor-Leste today are poverty and low human development. Poverty continues to haunt almost half of the population and achieving the Millennium Development Goals by 2015 appears to be a daunting challenge.  The UNDP PRU is working to support the National Priorities of securing Rural Development, tackling poverty and improving the living conditions of the Timorese population with a particular focus on environmental conservation, balanced regional development, youth and women. In doing so, the PRU is contributing to achieving significant improvements for vulnerable groups in sustainable livelihoods and poverty reduction. This involves working at a number of levels to develop national capacity whilst at the same time promoting adequate enabling environment to stimulate development at the local level.

In the first instance, the PRU is supporting the government in designing a comprehensive rural development strategy and programme for poverty reduction aiming at capacity development of key government functionaries, local participation, community-driven rural infrastructure, environmentally sustainable use of natural resources, decentralization of execution capacity and women’s empowerment.  Further support will be given to the government in the targeting of vulnerable women through the strengthening of its existing conditional cash transfer scheme.  Such support will form a significant part of PRU’s focus in 2009 and will see very close collaboration with the Ministry for Economy and Development, the Ministry for Agriculture and Fisheries and the Ministry of Social Solidarity.

The PRU will also continue to work in support of relevant Government Departments at the local level to support the creation of conditions which are right to accelerate development there. In this regard it will follow community mobilization as a strategy for poverty reduction based on the premise of people as agents of change. It will also work to strengthen microfinance institutions and enhance banking literacy in rural areas to make these institutions more inclusive and accessible through development of pro-poor products and services and will continue to support vital infrastructure to increase opportunities for rural population.

 In this regard, vital lessons learned from both the Ainaro-Manatuto and Oecusse Community Activation Programmes, the Access Improvement to Markets Programme and the Skills Training for Gainful Employment Programmes will be drawn on.  A major achievement of these programmes has been creation and strengthening of self-help groups contributing to social capital. Creation of local infrastructure has led to greater involvement of people in local decision-making process as well as use of local resources and skills. Replication of environmentally sustainable techniques like sloping agricultural land technologies (SALTs) would further contribute to protection of fragile natural resource base and improved agricultural productivity. Another notable achievement has been the completion of 5 bridges in the two eastern districts of Timor-Leste which has not only facilitated easy access by people to markets, but also paved the way for improved service delivery and communal harmony and peace for the people of the Viqueque and Lautem districts.

 Achievement of the MDGs (Pro-Poor Policy)

Since its establishment in August 2006, the Pro-Poor Policy Unit The unit has been instrumental in undertaking high-quality research on the causes and consequences of poverty, disseminating findings, and providing policy advice on pro-poor planning and policy design. A number of achievements to be recorded is, among others, the conclusion of the 2^nd Participatory Poverty Assessment  (a qualitative study that complements the Timor-Leste Survey of Living Standards 2007), the design of the Taxation Law that was promulgated by the President in July 2008 where the unit was appointed chair of the Tax Reform Commission. The unit also made substantial contribution to the State of the Nation Report 2008, policy dialogue on inequality, as well as other policy papers on various issues ranging from food crisis, rural development, power generation, to the design of a new Presidential Anti-Poverty Task Force. The latest substantial contribution was in the preparation of the 2^nd MDG Report 2009 which was launched by the Prime Minister during the Timor-Leste Development Partners Meeting on 3 April 2009. The unit has been involved in facilitating a number of sectoral strategic plans. The on-going policy work is done through the third National Human Development Report which will be focusing on the effective use of the Petroleum Fund to stimulate the non-oil economy, creating jobs and reducing poverty. To that end, a number of technical background papers has been finalized. Another strategic and normative role in terms of policy dialogue and advice, technical assistance and capacity development is through its role in strengthening national capacities to formulate inclusive MDG-based development strategies that are costed for purposes of fiscal stability, mobilizing resources and demonstrating achievable development results, thereby leading to increased MDG-resources being made available to Government.

Rui Gomes (Head of Unit)

Cornelio Barros (Programme Assistant)

Ms. Begona Gonzalez (Programme Officer)