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USAID/OTI East Timor Field Report
February 2002
Joint Report between OTI and USAID/East Timor Mission
Program Description
The USAID program in East Timor supports two key strategic objectives: promoting economic recovery and strengthening democratic institutions. Funding for FY 2002 totals $25 million.
The USAID democracy and governance assistance program centers on support in four areas: new legislative and executive bodies at the national and local level; the justice sector; local and national-level civil society; and the media. The Office of Transition Initiatives (OTI) also works closely with the democracy program in implementing activities in civil society strengthening, media development, rule of law, and pilot projects in community policing and civilian-military relations.
The USAID economic growth assistance program focuses on agricultural development and trade. This includes support for Cooperative Café Timor (CCT), a federation of Timorese-owned organic coffee cooperatives, through a technical assistance grant to the National Cooperative Business Association (NCBA). OTI activities focus on economic recovery and stabilization. The program includes small innovative grants with a view towards supporting the development of more diversified income sources during the current transition phase. The program also includes supporting policy analysis, advocacy, and capacity building for key economic transition issues.
Country Situation
East Timor independence leader Xanana Gusmao was nominated as a candidate for the first presidential elections by ten political parties, minutes before the registration deadline on February 23. Francisco Xavier do Amaral, a Deputy Speaker of the Constituent Assembly, is the second presidential candidate. The elections are scheduled for April 14. Fretilin, the majority party, did not nominate a specific candidate. The presidential election will be the third UN-administered ballot in East Timor. Unlike the previous two polls, East Timorese hold a majority of seats on the Independent Electoral Commission's Board, and will manage all 13 district electoral offices.
The Constituent Assembly approved the draft text of the Constitution, envisioning a parliamentary system with a strong executive. The public consultations for the draft Constitution began on February 25, scheduled for one week. The 88 Assembly members divided into 13 groups with each group visiting a district. Based on public meetings, each group is expected to present a report containing the public's criticisms and concerns. The reports will then be presented to the full Assembly ahead of a final vote and signing ceremony on March 16. Preliminary indications suggest that the short period of time for the consultations has resulted in significant discontent.
Three months ahead of East Timor's independence, on February 26, the East Timorese, Australian, and Indonesian governments held their first-ever tripartite meeting, in Denpasar, Indonesia. The three countries discussed issues of common interest such as security, cross-border crime and management of borders, repatriation of refugees, and economic and developmental cooperation and assistance. Indonesia and East Timor also continued bilateral negotiations, resulting in the signature of two protocols: one to establish postal links and another authorizing the creation of a commercial bus service linking the Oecussi enclave with the rest of East Timor.
Preliminary results of the Poverty Assessment Survey were released by the National Planning Commission. Poverty was found to be higher in rural areas (46% of the population) than in urban areas (26%), with the lowest incidence of people living below the absolute poverty line in Dili and Baucau (14%). A final report will be completed by the end of April.
OTI Highlights
A. Narrative Summary
Strengthening Democratic Institutions
In the overall democracy and governance sector, OTI made five grants during February totaling $145,245. In the area of rule of law, OTI made a new grant to the Ministry of Justice for the purchase of legal reference books in Indonesian. Although Indonesian is the language in which most of the judges, prosecutors, and public defenders were educated, most of them have not had sufficient access to law reference books since the establishment of East Timor's judicial system in 2000. OTI has also made a follow-on grant to the Judicial System Monitoring Programme to continue their work of monitoring and documenting the development of the judicial system, including the investigation and prosecution of crimes against humanity perpetrated during the post-referendum violence in 1999 by the Serious Crimes Unit. The new grant also includes increased support for public outreach and information on the development of the justice system.
With regard to ongoing grants, the National Democratic Institute's civilian-military relations program began activities in February with a series of meetings to introduce the program to various stakeholders. Several public seminars will be held beginning in March. A grant to the International Organization for Migration (IOM) to support the collection and presentation of East Timorese experiences during the resistance movement also commenced work in mid-January. IOM is also the implementing agency for the OTI and World Bank-financed Falintil Reintegration Assistance Program (FRAP) targeted at the re-integration of ex-Falintil combatants. The project team began traveling to the districts in February, compiling the oral history archive from which a 12-part radio show, to be aired in the lead-up to independence, will ultimately be drawn.
In February, NDI produced and distributed 6,000 draft constitutional summaries in Tetum language and 500 in Indonesia. The summaries capture the main ideas of the draft constitution which allowed many citizens a first glimpse of the Constituent Assembly's work. NDI also helped distribute 2,000 Indonesian versions of the draft constitution provided by the Constituent Assembly Secretariat in preparation for the Constitutional Assembly members holding public meetings throughout the districts.
On February 7, NDI and the Faculty of Social and Political Sciences at the University of East Timor (UNTIL) held a joint seminar to launch the focus group report, "Carrying the Aspirations of the People". The report provides insight into the thoughts and concerns of the East Timorese people in the period immediately following a wave of vigorous political activity - including civic education campaigns, constitutional consultations and elections for the Constituent Assembly. The report is based on 11 focus groups in five districts. The focus group results clearly indicate that the people of East Timor have enthusiastically embraced democracy. Participants are eager for a better political and economic future, and they look to their leaders to take them there. However, participants expressed no blind faith in political leaders -- after a traumatic 24 years of Indonesian occupation and resistance, the people of East Timor are an alert and demanding constituency. Focus group participants acknowledged that they have high expectations from their leaders and that they want their interests represented by their elected representatives. The full text of the focus groups is on NDI's website (http://www.ndi.org/worldwide/asia/easttimor/
etimorfocusgrps_202/easttimor_focusgroupreport.asp)
In the areas of media and civil society, OTI made three new grants in the month of February. Given USAID's strong investments in the media sector in East Timor, OTI also supported an assessment of the state of East Timor's media, carried out in January and February. This media study assessed the level of development of East Timor's media sector, ranging from the two daily newspapers published in Dili to the number of community radio stations active in rural areas. The team also examined issues of concern for the future of media in East Timor, including the future of Radio UNTAET and questions regarding the creation of an independent national broadcaster. A draft regulation to establish an independent public broadcaster exists, but has not been adopted.
As part of its support to civil society, OTI supported the rehabilitation of three district offices for the local NGO, RENETIL, in Ermera, Suai, and Manatuto. Founded in 1988 by East Timorese students, RENETIL has developed an extensive network of members and supporters throughout East Timor and was a key force in advocating for East Timor's independence. This network now provides a strong basis for future civic education and public information activities. These three district offices will provide a base for RENETIL's civic education activities in the districts as well as a space for coordination with the UNDP district civic education teams and other groups.
Promoting Economic Recovery
OTI finalized three grants in February under the Economic Recovery program totaling $219,800. The grants support capacity building for farmers in 23 agricultural cooperatives, expertise and capacity building for demarcation of the border between East Timor and the Republic of Indonesia, and office refurbishment of Agriculture Department field offices.
Klibur is a local NGO with an excellent record of helping cooperatives of coffee farmers in East Timor. With a grant of $7,800, Klibur is providing business and marketing training to the farmers groups supported by Project BELE to help them manage resource and marketing problems more effectively. Twenty-three farmers groups participate in six districts: Baucau, Manantuto, Manufahi, Ainaro, Bobonaro and Liquica. A grant for $81,200 to the East Timor Transitional Public Administration provides expertise and capacity building for border demarcation. On-going negotiations and hopes for normalization of relations between East Timor and Indonesia will be strengthened by this grant, which provides experts and logistical support for officers in the Ministry of Foreign Affairs and Cooperation to fully participate in negotiating border demarcation and border arrangements with Indonesia. Finally, as a result of UNTAET downsizing, ETPA Ministry of Agriculture and Fisheries field staff were left without furniture and equipment. A grant of $29,900 to the Ministry enables the field staff to continue to function, a critical need given the lack of alternative extension services in most of East Timor.
The USAID Coffee Cooperative Timor (CCT) project and the NCBA grantee technical assistance staff continue to prepare for this year's harvest, which will begin in late April/early May. The heavy rains of January and February that have caused flood damage in Java and some of the outer islands did not affect the coffee trees, and a bumper crop is expected again this year. The four wet processing facilities located in the prime coffee growing areas are being upgraded to increase the amount of coffee cherry processed on daily basis, which will increase the amount of coffee purchased and exported to international markets this year. If the harvest and processing go well, the harvest should exceed the 10,000 mts. of coffee cherry harvested during the 2001 season.
Marketing discussions with potential buyers continue for the sale of this year's crop. This year's crop should bring a higher price to the farmer resulting from the recently signed "Fair Trade Agreement" and the very good potential of selling this years crop above the NY "C" price (now at about 49 cents/lb.). Timor Organic Specialty Coffee is also recognized in the world for its quality and if the quality is maintained, the farmers should receive a higher price for their crop than they received last year. The farm-gate price will be established in April resulting from the on-going discussions with the buyers.
Organic Vanilla, as a supplemental crop for farmers, grows well in some of the poorest areas of East Timor at elevations where coffee is also grown. This new effort at crop diversification by CCT continues to show great promise, with the market price at a record high. Timorese CCT managers and extension staff are having trouble keeping up with the demand for vanilla and host tree cuttings from the farmers. Some 250 farmers at one site alone have requested cuttings to plant this year. Because this is a new crop to East Timor, the extension agents are proceeding carefully with the introduction of this crop to make sure that farmers understand the three-year period needed to allow the vanilla plant to mature and to be harvested. They want to introduce this crop properly and are more interested, as is the market, in quality rather than quantity. They have also learned from prior failures, as have many of the other donors who have worked in East Timor, that rapid introduction of any new farming practice in rural areas must be carefully done.
On February 12, the Minister of Health, Dr. Rui opened the new CCT-Health Clinic in Dili, which is one of the first privately-funded clinics in East Timor. This clinic was originally established to serve Cooperative members near Dili but became so popular that businesses, banks and donor organizations requested that their Timorese employees be allowed to use the facility. Since the original premise for all CCT activities is to become sustainable as soon into the project cycle as possible, the CCT managers decided to charge for providing primary health services at the Dili Clinic. To date, some 20 businesses and organizations pay for their staff to use the facility. It is considered to be the best service at a reasonable price, averaging some $4.75 per patient. The Minister, in his remarks at the opening ceremony, praised the work of the staff and indicated that his Ministry is evaluating this USAID-funded facility and the provision of primary health care service on a fee-for-service basis for other cities in East Timor.
B. Indicators of Success
- The Carter Center has carried out two successful community level meetings on rule of law in Los Palos and Ermera districts. The meetings were well attended and touched on a wide range of topics, including the role of the police, the judicial system, the work of human rights and advocacy organizations, and informal versus statutory justice. In an upcoming meeting in Viqueque district, a video about the work of the Serious Crimes Unit, produced under a grant to the Coalition for International Justice, will be piloted as well.
- The media assessment generated fruitful discussion, particularly surrounding the issue of the establishment of a national public broadcaster, and including articles in the print media on the role of the mass media in East Timor. The completed assessment report will be completed in early March and will be translated into Bahasa Indonesia and Portuguese for wide dissemination.
- In February, 61,500 copies of the draft constitution were printed and distributed in preparation for the Constitutional Assembly members public meetings, a joint project with the Constituent Assembly secretariat and Press Office, supported by the Asia Foundation. Internews also produced a magazine to help explain the major themes of the constitution in simpler language and drawings. Fifty thousand copies in Tetum, Bahasa Indonesia and Portuguese were distributed along with the text of the draft constitution.
- A local NGO, Moris Rasik/CASHPOR, continues to distinguish itself in delivering financial services to poor women in East Timor. On February 16, the group celebrated their second disbursement of loans in the border district of Bobonaro and expanded operations to Covalima. While other microfinance providers operating in East Timor complain of elite capture, lack of transparency, low productivity of field staff and low repayment, Moris Rasik's 500 members have received 400 loans with a 93% repayment rate. OTI's grant for fixed assets and materials allowed Moris Rasik to allocate funds to the needed training, supervision and monitoring and still stay on their five-year business plan to provide sustainable financial services to the poor. AusAid is the primary donor to Moris Rasik, with OTI's grant providing needed supplementary assistance.
C. Program Appraisal
OTI has supported a number of endeavors in the critical area of public outreach and information. The emphasis on public information about the judicial system, the role of the police and the military, the work of the Serious Crimes Unit, and the importance of institutional safeguards against abuse and corruption is a response to strong demands from communities for more information. With the establishment of the justice system, the gradual transfer of responsibilities from the Peace-keeping Force to the East Timor Defense Force and from CivPol to the East Timor Police Service, and the ongoing work of the Serious Crimes Unit, many communities are eager for more information about the responsibilities of different institutions and where they may turn for help under what circumstances. OTI's increased support to projects with a public information component, including grants to the Carter Center, the Judicial System Monitoring Programme, and the Coalition for International Justice, have helped address this need.
NEXT STEPS/IMMEDIATE PRIORITIES
Program planning in the rule of law sector, with particular focus on the formal justice system, will be undertaken in March. OTI participation will generate an outline of funding opportunities for the short and medium term, focusing on high-impact grants aimed at bolstering the formal justice system. As East Timor moves towards independence on May 20, 2002, establishing rule of law and a stable, effective justice system will be critical to long-term political stability in the new country. The OTI civil society program will focus on improving the capacity of local organizations to conceptualize, implement and evaluate civic education programs. A potential grant is currently under development to provide hands-on mentoring and technical assistance to local groups over a five-month period.
The USAID Democracy and Governance grantees are mobilizing programs for the presidential elections in April. Programs will include monitoring the political environment and campaign period; support for domestic election monitoring groups; training for political parties and party agents; work with independent media to support effective coverage of the electoral process; and continuing the civic forum discussions through modules on the constitution and presidential powers. The Asia Foundation is completing its second national survey which captures citizens' understanding and perspectives of recent political processes, including the constitutional drafting process. The report will be released in late March.
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