The Poverty Reduction Unit (PRU) is supporting the government in designing a comprehensive rural development strategy and programme for poverty reduction aimed at developing the capacity 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 is being given to the Government in the targeting of vulnerable women through the strengthening of its existing conditional cash transfer scheme. 

The PRU continues to work with relevant government departments at the local level to support the creation of conditions which are right for accelerating development. In this regard it follows community mobilization as a strategy for poverty reduction, based on the premise of people as agents of change. It also works 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.

 
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 2nd 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 2nd MDG Report 2009 which was launched by the Prime Minister during the Timor-Leste Development Partners Meeting on 3 April 2009 and an updated report in the form of a booklet, which was presented at the MDG Summit in September 2010. The unit has been involved in facilitating a number of sector-specific strategic plans. The on-going policy work is done through the third National Human Development Report, which focuses on the effective use of the Petroleum Fund to stimulate the non-oil economy, creating jobs and reducing poverty. The NHDR is in its final stage and is expected to be launched early 2011. Another strategic and normative role in terms of policy dialogue and advice, technical assistance and capacity development has been provided through the MDG Secretariat which assists the MDG Steering Committee in identifying the kinds of policies to achieve the MDGs. At the same time it strengthens national capacities to formulate inclusive MDG-based development strategies that are costed for purposes of fiscal stability, mobilizing resources and demonstrating achievable development results.