by GUTERIANO NEVES
When Indonesia withdrew from Timor-Leste (TL) in 1999, governments all over the world expressed their sympathy for the Timorese. Donor governments promised to assist TL to build a viable state, with lasting peace and stability. Early on, the United States also committed to help TL move toward a democratic society. Secretary of State Hillary Clinton recently reiterated this commitment in her meeting with TL’s Prime Minister Xanana Gusmao. The United States, she said, wants “to continue to provide U.S. support for this incredibly important transition and transformation.” Timorese, who have suffered from Indonesian military occupation and the double standards of the United States and other Western countries for 24 years, listened very carefully to this political rhetoric, hoping that the future of the children would be better.
After 11 years, the rhetoric is still the same. But the reality on the ground has not changed much.
Timor-Leste is one of the most oil-dependent countries in the world, where more than 90% of the government’s annual budget comes from petroleum revenues. It imports everything from computer hardware to bottled water. Its infrastructure is very poor, making it hard for local farmers to transport crops to markets. Local farmers must also compete with an influx of imported goods from Australia, Singapore, and other countries. Many Timorese are still struggling with poor healthcare, lack of educational opportunities, little clean water, and other insufficient social services. Social inequality is widening, especially between the capital Dili and other districts.
These social ills are partly the result of the fragility of TL’s public institutions and the legacy of colonialism. But foreign aid has also failed to deliver on its promise in Timor-Leste.
Missing Billions
Since 1999, Timor-Leste has received more than $5 billion. In 2009, Al Jazeera documented that each of the 1.1 million Timorese received $8,000 in aid between 1999 and 2009. This aid is given in various ways, depending on the context, donors’ policies, and international political economic circumstance. Between 1999 and 2001, most foreign aid went to resolve the humanitarian and emergency situation. However, from 2002-2006, according to Scantem Report, aid was focused on state-building through strengthening the capacity of state institutions and the delivery of core public services. The same report also reveals that 82 percent of total assistance was given through bilateral cooperation, 16 percent through the Trust Fund managed by the World Bank, and the rest went through other channels. TL’s President Jose Ramos Horta once said, “If this money is spent wisely, Timor-Leste would have been free from poverty.”
On the contrary, aid in Timor-Leste has had little impact on the local economy, policy coherence, local community ownership, and long-term vision. According to Timor-Leste’s institute for reconstruction and development La’o Hamutuk, only one out of every ten dollars spent in Timor-Leste enters the local economy. Most of it leaves the country to pay for international consultants, imported goods from other countries, military operations, and so on.
FPIF for more