Front Matter

Front Matter

Author(s):
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

    Price: $18.00

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    Contents

    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.

    Preface

    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

    AsDB

    Asian Development Bank

    ASEAN

    Association of South East Asian Nations

    BI-D

    Bank Indonesia Office in Dili

    BULOG

    National Food Logistics Agency

    CAP

    Consolidated Appeal Process

    CEP

    Community Empowerment Project

    CFA

    Central Fiscal Authority

    CNRT

    National Council of the Timorese Resistance

    CPO

    Central Payments Office

    DCU

    Donor Coordination Unit

    EC

    Executive Council

    EK

    Elang Kakatua project

    ETA

    East Timor Administration

    FAD

    IMF Fiscal Affairs Department

    FAO

    Food and Agriculture Organization of the United Nations

    GDP

    Gross Domestic Product

    HAER

    Humanitarian Assistance and Emergency Rehabilitation

    JAM

    Joint Assessment Mission

    JICA

    Japan International Cooperation Agency

    LPG

    Liquified Petroleum Gas

    MAE

    IMF Monetary and Exchange Affairs Department

    NCC

    National Consultative Council

    NGO

    nongovernmental organization

    Rp

    Indonesian Rupiah

    SEP

    Small Enterprise Project

    SRSG

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

    TFET

    Trust Fund for East Timor

    UNAMET

    United Nations Mission to East Timor

    UNDP

    United Nations Development Programme

    UNOCHA

    United Nations Office for the Coordination of Humanitarian Affairs

    UNTAET

    United Nations Transitional Administration in East Timor

    USAID

    U.S. Agency for International Development

    WFP

    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: http://wbln0018.worldbank.org/eap/eap.nsf; M. Arneberg and J. Pedersen, Social and Economic Conditions in East Timor (Columbia University and Fafo Institute of Applied Social Science), 1999.

    Children in the age group one to six.

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