Abstract
Following the restoration of peace in 1999, the IMF assumed the role of primary provider of macroeconomic policy advice to Timor—Leste. This assistance was provided under the aegis of the United Nations Transitional Administration in East Timor from 1999 to 2002. At independence in 2002, the main challenges facing Timor-Leste were to elevate the erstwhile non-oil economy to a higher growth path and improve human development while preserving macroeconomic stability. Distinct from other post-conflict countries, Timor-Leste, at that time, had no pre-existing institutions to provide even basic fiscal and monetary management functions. The support of the IMF was therefore crucial in building institutions and creating capacity for the design and adoption of the requisite macroeconomic policy mix. Reinforcing this effort was the IMF’s technical assistance (TA) which created the embryonic institutions, prepared the minimum legal and regulatory framework for their operation and assisted with the bridging of skill gaps and the creation of institutional capacity for policy formulation and implementation.