Front Matter

Front Matter

Luis Mendonca, Shamsuddin Tareq, Luis Valdivieso, Alejandro Lopez Mejia, and Toshihide Endo
Published Date:
August 2000
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    ©2000 International Monetary Fund

    Production: IMF Graphics Section

    Cover design: Sanaa Elaroussi

    Typesetting: Alicia Etchebarne-Bourdin

    Figures: Theodore F. Peters, Jr.

    Cataloging-in-Publication Data

    East Timor: establishing the foundations of sound macroeconomic management/Luis M. Valdivieso … [et al.]—Washington, D.C.: International Monetary Fund, 2000.

    p. cm.

    Includes bibliographical references.

    ISBN 9781557759610

    1. Timor Timur (Indonesia)—Economic policy. 2. Timor Timur (Indonesia)—Economic conditions. 3. Macroeconomics. 4. International Monetary Fund—Indonesia—Timor Timur. 5. World Bank—Indonesia—Timor Timur. 6. Referendum—Indonesia—Timor Timur. I. Valdivieso, Luis. II. International Monetary Fund.

    HC448.E27E36 2000

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    The following symbols have been used throughout this paper:

    • … to indicate that data are not available;

    • — to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;

    • – between years or months (for example, 1998–99 or January–June) to indicate the years or months covered, including the beginning and ending years or months;

    • / between years (for example, 1998/99) to indicate a crop or fiscal (financial) year.

    “Billion” means a thousand million.

    Minor discrepancies between constituent figures and totals are due to rounding.

    The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.


    This paper has benefited from the comments of a large number of IMF colleagues, in particular Shigemitsu Sugisaki, Yusuke Horiguchi, Anoop Singh, and Anthony Elson. It also reflects comments received from Sérgio Vieira de Mello, Andrew Whitley, and Fernanda Borges (all of the United Nations Transitional Administration in East Timor—UNTAET).

    In preparing this report, IMF staff held extensive consultations with UNTAET; leaders and technical representatives of the National Council of the East Timorese Resistance (CNRT); the authorities of the East Timorese church; representatives of the main bilateral donors and NGOs; and representatives of the East Timorese private sector and civil society at large. The paper has also benefited from close cooperation with the Indonesian authorities. The staff has also held numerous meetings with various organizations involved in humanitarian relief operations (initially the UN Office for the Coordination of Humanitarian Affairs (OCHA) and subsequently the Humanitarian module of UNTAET, UN agencies, and various NGOs). IMF staff has coordinated closely with the staff of the World Bank and the Asian Development Bank.

    Most of the information used in the background section and the key elements of the strategy were developed by the first IMF mission to East Timor, which consisted of Messrs. Valdivieso (head) and Wade (both Asia and Pacific Department), Messrs. Corfmat and Prakash (both Fiscal Affairs Department), Messrs. Lee and Lonnberg (both Monetary and Exchange Affairs Department), and Mr. Morris (Regional Office for Asia & the Pacific). The strategy was further developed by two technical assistance missions from the Monetary and Exchange Affairs Department and the Fiscal Affairs Department in January–February 2000, while the assessment of implementation and monitoring of developments have been done through a combination of sequential Asia and Pacific Department missions, a full-fledged Asia and Pacific Department mission in June 2000, and two review missions by the Monetary and Exchange Affairs Department (May 2000) and the Fiscal Affairs Department (June 2000).

    Acronyms and Abbreviations


    Asian Development Bank


    Association of South East Asian Nations


    Bank Indonesia Office in Dili


    National Food Logistics Agency


    Consolidated Appeal Process


    Community Empowerment Project


    Central Fiscal Authority


    National Council of the Timorese Resistance


    Central Payments Office


    Donor Coordination Unit


    Executive Council


    Elang Kakatua project


    East Timor Administration


    IMF Fiscal Affairs Department


    Food and Agriculture Organization of the United Nations


    Gross Domestic Product


    Humanitarian Assistance and Emergency Rehabilitation


    Joint Assessment Mission


    Japan International Cooperation Agency


    Liquified Petroleum Gas


    IMF Monetary and Exchange Affairs Department


    National Consultative Council


    nongovernmental organization


    Indonesian Rupiah


    Small Enterprise Project


    Special Representative of the Secretary General of the United Nations for East Timor


    Trust Fund for East Timor


    United Nations Mission to East Timor


    United Nations Development Programme


    United Nations Office for the Coordination of Humanitarian Affairs


    United Nations Transitional Administration in East Timor


    U.S. Agency for International Development


    World Food Programme

    East Timor: Basic Social Indicators

    Mortality Indicators
    Infant mortality rate per 1,000 live births (1996)149
    Maternal mortality rate per 1,000 live births (1990)8
    Life expectancy (1996)52
    Health Indicators
    Percentage of malnourished children (1998)138
    Percentage of children under five with full immunization coverage (1996)49
    Medical doctors per 100,000 people (1996/97)15
    Education Indicators
    Illiteracy, percentage (1996/97)50
    Percentage of adult population with secondary or higher education (1998)19
    Other Indicators
    Percentage of the population below the poverty line (1998)50
    Number of buses per 100,000 people (1998)1.5
    Percentage of households with access to electricity (1996)25
    Number of phone lines per 1,000 people (1996)8
    Percentage of households with access to running water (1996)25
    Sources: World Bank, Joint Assessment Mission (JAM) Background Report, available via the Internet:; M. Arneberg and J. Pedersen, Social and Economic Conditions in East Timor (Columbia University and Fafo Institute of Applied Social Science), 1999.
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