联合国亚太经社会（UNESCAP）：东帝汶：结构转型和经济多样化以可持续方式从最不发达国家毕业

SectiononSustainableDevelopmentandCountriesinSpecialSituations

TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsa

sustainablegraduationfromLDCcategory

HelderLopes

2TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

Disclaimer:ThedesignationsemployedandthepresentationofthematerialinthispolicybriefdonotimplytheexpressionofanyopinionwhatsoeveronthepartoftheSecretariatoftheUnitedNationsconcerningthelegalstatusofanycountry,territory,cityorarea,orofitsauthorities,orconcerningthedelimitationofitsfrontiersorboundaries.Wherethedesignation“countryorarea”appears,itcoverscountries,territories,citiesorareas.Bibliographicalandotherreferenceshave,whereverpossible,beenverified.TheUnitedNationsbearsnoresponsibilityfortheavailabilityorfunctioningofURLs.Theopinions,figuresandestimatessetforthinthispublicationshouldnotnecessarilybeconsideredasreflectingtheviewsorcarryingtheendorsementoftheUnitedNations.ThementionoffirmnamesandcommercialproductsdoesnotimplytheendorsementoftheUnitedNations

3TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

Pleasecitethispaperas:Lopes(2023),TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory.UnitedNationsESCAP,SectiononSustainableDevelopmentandCountriesinSpecialSituations,November2023.Bangkok.

Availableat:

/kp

ISSN1111-1111

Trackingnumber:CSSWorkingPaperNo.23-6

Abouttheauthor:HelderLopes,Dili,TimorLeste.

4TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

Contents

1.ABSTRACT 6

2.ACRONYMS 8

1.INTRODUCTION 9

2.REVIEWOFTHEIMPLEMENTATIONOFTHE2030AGENDAANDSTRATEGIC

DEVELOPMENTPLANFRAMEWORK 13

2.1COUNTRY’SVISIONFORSUSTAINABLEDEVELOPMENT 13

2.2PROGRESSTOWARDSACHIEVINGTHESUSTAINABLEDEVELOPMENTGOALS

14

2.3IMPLEMENTATIONOFTHE2030AGENDAANDTHEOVERALLCHALLENGES16

2.4PARTNERSHIPFRAMEWORKANDPRIORITYOUTCOMES 16

2.5GENDEREQUALITYANDWOMENEMPOWERMENT 18

3.REVIEWOFUNDERLYINGCONCERNSONECONOMICDIVERSIFICATIONAND

SUSTAINABLEDEVELOPMENTFORLEASTDEVELOPMENTCOUNTRYGRADUATION

20

3.1THEDOWNTURNINPER-CAPITAINCOMEANDOVERALLGOVERNMENT

REVENUE 20

3.2LIMITEDECONOMICDIVERSIFICATION 22

3.3SLOWPROGRESSOFPRIVATESECTORDEVELOPMENT 25

3.4WEAKTRADEPERFORMANCE 27

4.BENEFITSOFINTERNATIONALSUPPORTMEASURESFORTIMOR-LESTE 30

4.1NON-LENDINGFINANCIALSUPPORT 30

4.2CONCESSIONALLENDINGSUPPORT 31

4.3PREFERENTIALMARKETACCESS 33

5.IMPACTOFCOVID-19PANDEMICTOPREPARATIONOFLEASTDEVELOPED

COUNTRYGRADUATION 35

5.1IMPACTTOECONOMICGROWTHANDPER-CAPITAINCOME 35

5.2IMPACTTOECONOMICDIVERSIFICATION 36

5.3IMPACTTOJOBSANDCONSUMPTIONLEVEL 38

5.4RESPONDINGANDMANAGINGTHEIMPACT 39

5TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

6INFRASTRUCTUREDEVELOPMENT:PROGRESSANDCHALLENGE 41

7REGIONALCOOPERATIONTOPROMOTEECONOMICINTEGRATIONANDTRADE 46

7.1TRADEPOLICY 46

7.2TRADEFLOWS 47

7.3WORLDTRADEORGANIZATIONANDASSOCIATIONOFSOUTHEASTASIAN

NATIONSACCESSIONPROCESS 49

7.4ADDRESSINGSUPPLY-SIDECONSTRAINTS 51

8PRIORITYAREASANDPOLICYRECOMMENDATIONS 52

8.1EFFICIENTRESPONSETOTHECOVID-19PANDEMIC 52

8.2ENHANCINGIMPLEMENTATIONOFTHEDEVELOPMENTFRAMEWORK 52

8.3BUILDINGINSTITUTIONALCAPACITIESTOENHANCEEFFICIENTSERVICE

DELIVERY 53

8.4IMPROVINGPRODUCTIONCAPACITYANDSTRUCTURALTRANSFORMATION

53

9REFERENCES 59

10ANNEXES 62

6TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

1.Abstract

AlthoughTimor-LestemettheleastLDCgraduationcriteriaofGNIper-capitaandthehumanassetsindexduringthe2018and2021triennialreviewsandwasfoundeligibleforgraduation,itwasrecommendedthatgraduationbedeferredto2024,owingtocontinuedconcernsaboutthesustainabilityofthecountry’sdevelopmentprogress.

PathwaystowardsLDCgraduationandachievingtheSustainableDevelopmentGoalsarebroadlydefinedinthecountry’sstrategicdevelopmentplanandthesustainabledevelopmentframework,whicharebeingimplementedthroughtheSDGroadmapandtheGovernment’sshort-andmedium-termplan.

Timor-Lestehasmadesubstantialeconomicprogressoverthepast20yearsbutgraduatingfromLDCremainschallengingandfullyachievinganyoftheSDGsby2030isunlikelyunderthecurrentdevelopmentpace.Notedprogressindevelopmentgainshasbeeninthebenchmarksrelatedtoschoolattendance,childandmaternalhealth,andelectricityaccess.Timor-Leste,however,islaggingwithregardtopovertyreductionandequalityofaccesstoqualityservicesandopportunities.Prospectsforthecountry’ssustainabledevelopmentisuncertaininviewofasignificantdeclineofoilrevenue,limitedeconomicdiversificationandarecentslowdownineconomicdevelopment.

TangibleandmorepracticalactionsareneededtoprepareforLDCgraduationandprogresstowardsachievingtheSustainableDevelopmentGoals.Timor-Lesteneedsto

enhancetheimplementationofthedevelopmentframeworkbyintegratingstrategiesforgraduationintotheplanningframework,buildinginstitutionalcapacities,includingtheestablishmentofanationalcommitteeforLDCgraduation,andpromotinggoodcooperationandpartnershipswithdevelopmentpartnerstoefficientlydeliverservicesatalllevelsofgovernance.

Aconducivemacroeconomicandbusinessenvironmentandprudentfiscalpolicymustunderpintheeconomicdiversificationprocessandprivatesectordevelopmentinordertoattainvibrantandinclusivegrowth,whichareparamountforthecountry’spreparationtograduatefromLDCstatusaswellasforittobuildaresilienteconomy.TheGovernmentneedstoimmediatelyrestoremacroeconomicstabilityandquicklyrecoverfromrecenteconomicrecessions.Prudentfiscalpolicygroundedinfiscalsustainabilityandrationalizationofexpenditurearenecessarytobuildsustainableinfrastructure,aswellasforhumancapitaldevelopment,facilitationandpromotionofprivatesectorinvestment,andeconomicdiversificationbasedonthedevelopmentthefollowingtheresectors:agriculture;tourism;andmanufacturing.Creatingmoremarketopportunitiesforinvestmentandtradethrougheconomicintegrationareimportant–mobilizingresourcesundertheBeltandRoadInitiativeforinfrastructuredevelopmentandacceleratingthecountry’saccessionstoWTOandASEANneedstobepromoted.

7TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

ItisalsocriticalforTimor-LestetoensurethesustainabilityofthePetroleumFund,mobilizemoretaxanddomesticresourcesthroughefficienttaxadministrationandpolicy,enhanceimplementationofthe“ForeignAidPolicy”forefficient

managementofODA,mobilizemoreexternalconcessionalborrowings,andencouragemobilizationofprivatesectorresourcesthroughPPP,equityparticipation,andthedevelopmentofinstitutionsandlegislationforthecreationofabondmarket.

Keywords:leastdevelopedcountry,economicdevelopment,andmobilizationofresources

8TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

2.Acronyms

ADBAsianDevelopmentBank

ADF

AsianDevelopmentFund

AEC

ASEANEconomicCommunity

AIIB

AsianInfrastructureInvestmentBank

ASEAN

AssociationofSoutheastAsianNations

ESCAP

EconomicandSocialCommissionforAsiaandthePacific

FDI

foreigndirectinvestment

GDP

grossdomesticproduct

GNI

grossnationalincome

HAI

humanassetindex

IBRD

InternationalBankforReconstructionandDevelopment

IDA

InternationalDevelopmentAssociation

IFC

IDMs

InternationalFinancialCooperationinternationalsupportmeasures

IMF

InternationalMonetaryFund

JICA

JapanInternationalCooperationAgency

KPIs

KeyPerformanceIndicators

LDC

leastdevelopedcountry

ODA

officialdevelopmentassistance

OECD

OrganizationforEconomicCooperationandDevelopment

SDGs

SustainableDevelopmentGoals

SERVE

ServiceofRegistrationandVerificationofEnterprises

UNTACD

UnitedNationsConferenceonTradeandDevelopment

WHO

WorldHealthOrganization

WTO

WorldTradeOrganization

9TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

3.Introduction

Sinceattainingindependencenearlytwodecades,Timor-Lestehasmadesubstantialprogressinnation-building.ThecountryhasemergedfrommassivedestructionandconflicttobecomeoneofthemostpeacefulanddemocraticcountriesinAsiaandthePacific(EconomistIntelligenceUnit,2020).

Despitemilestoneachievements,progresstowardsgraduationfromleastdevelopedcountry(LDC)statusandachievingsustainabledevelopmentaspirationsremainschallenging,asthecountryishighlyvulnerabletobarriersandexternalshocks,facesinfrastructuregapsandisstillstructurallyunderdeveloped.

PathwaystowardsLDCgraduationandachievingtheSustainableDevelopmentGoalsarebroadlydefinedinthecountry’sstrategicdevelopmentplan2011-2030inwhichthevisionistotransformTimor-Lestetoanupper-middleincomecountrywithahealthyandeducatedpopulationby2030.Tooperationalizethestrategicdevelopmentplan,theGovernmenthasformulatedafive-yearplan(2018--2023),adoptedthe2030AgendaforSustainableDevelopmentandapprovedaroadmapforachievingtheSustainableDevelopmentGoal(SDGs),andpreparedthesustainabledevelopmentcooperationframework2021--2025.SuccessfulimplementationofthestrategicdevelopmentplanandtheachievementoftheGoalswouldensurethatTimor-LestegraduatesfromLDCstatusinthenearfuture.

Theroadmapforimplementationofthe2030AgendaandtheachievementoftheSDGssinTimor-Lesteisbasedonthestrategicdevelopmentplan.Undertheroadmap,

1Timor-LesteisoneofthefoundingnationsofG7+,whichisagroupofconflictaffectedandfragileStates

plans,strategies,systemsandinstitutionalstructuresrequiredtoachievesustainabledevelopmentarearticulated.Inaddition,theecosystemofsustainabledevelopmentinthecountry,includinghighlightinganenablingenvironmentforachievingthe2030Agenda.Isexamined.

KeyenablersforTimor-Lestetoprogresstowardssustainabledevelopmentare(a)inclusion,awarenessandengagement:buildingastrongsocialsolidaritytofurther

womenandthenational

empoweryoungpeople,marginalizedgroupsin

development;(b)effectiveinstitutionanddecentralization:efficientpublicservicedeliveryatnationalandsubnationallevelsoratmunicipalities;(c)integratedplanning,budgetingandmonitoring:implementingprogrammebudgetingtostrengthenalignmentofnationalinvestmentwiththestrategicdevelopmentplan;(d)financingaframeworkforthefuture:economicdiversificationwiththeprivatesectorservingastheengineforfuturegrowth;and(e)transformativepartnership:engagingprivatesectorandcivilsocietyinnationaldevelopmentandadvocatingthe2030AgendagloballythroughtheG7+networkofexchangeexperienceandsupportvia“fragiletofragile”cooperation.1

ThestrategicdevelopmentplanisanintegratedpackageofstrategiesandpoliciesalignedwiththeMillenniumDevelopmentGoalsandSDGs.Itisbeingimplementedinthreephases.Thefirstphasewasimplementedovertheperiod2011-2015withthefocusondevelopmentofinfrastructure,humanresourcesandinstitutions–astheyareprerequisitesfordevelopmentofproductivesectors.The

10TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

secondandthirdphasesaretimelyandalignedwith2030Agenda,underwhichtheunderlyingstrategiesandpoliciesaretocontinuetobuildinfrastructureandenhancethecapacityofhumanresourcesandinstitutionstoenableefficientservicedeliveryandunderpinprivatesectordevelopment,economicdiversification,andpovertyreductionefforts(seefigure1).

EconomicdiversificationeffortsinTimor-Lestefocusonthedevelopmentofagriculture,tourism,manufacturingandpetrochemicalindustries.Thesesectorswereselectedbasedonendowedresourcesandtheirpotentialtoreducepovertyandcontributetowardsinclusiveandsustainabledevelopmentthroughthecreationofemploymentandlivelihoodsforallpopulationsegments,inparticularthegrowingyoungpopulation.

Strategicprioritiesfordevelopmentofthesesectorstodiversifytheeconomyoutlinedinthestrategicdevelopmentplanarethefollowing:(a)transformingtheexistingsubsistenceagriculturetocommercial

farmingtoprovidefoodsecurityandlivelihoodsandboostruraldevelopment,anddevelopexport-orientednicheagriculturalproducts;(b)takingadvantageofnaturallyendowedtourism,suchasthecountry’snaturalbeauty,cultureandheritage,andrichhistorytodevelopnichetourismservices,suchasecoandmarineservices,historicandculturalexperiences,adventuretravelandsports,andreligioustourismproductsthatrespondtointernationaltouristsdemand;(c)developinglow-skillandlow-capitalrequirementsformanufacturingprocesses,suchascoffeeprocessingandhandicraftfortourism,andhighvalueexportorientedindustries,suchasestablishmentofaliquifiednaturalgas(LNG)plantandrefinerytoaddvalueonshoredownstreamtotheoilandgasindustry;and(d)developingdownstreamintheSouthcoasttocapturethefullvalueofpetroleumresourcesthroughdirectandindirectbenefits,suchasincomegeneration,jobscreationandgrowthofnewbusinesses.ThepetrochemicalindustryisexpectedtogeneratemorerevenuefortheGovernmenttobeusedtodevelopothersectors

PhaseI:2011-2015

PhaseIII:2021-2030

□HumanResourceDevelopment.

□InfrastructureDevelopment.

□StrengthenInstitutions

□EradicateExtremePoverty.

□Modernizeand

StrengthenPrivateSector.

□DiversificationofEconomy.

VISION:TIMOR-LESTETOBEANUPPER-MIDDLEINCOMECOUNTRYWITHAHEALTHYANDEDUCATEDPOPULATIONIN2030

Figure1:Implementationphaseofthestrategicdevelopmentplan

PhaseII:2016-2020

□StrengthenHumanResources.

□Strengthen

Infrastructure.

□DevelopStrategicIndustries.

Source:Strategicdevelopmentplan,Timor-Leste(2021)..

Timor-LestewaseligibletograduatefromLDCstatusforthefirsttimein2015basedonitsgrossnationalincome(GNI)per-capitaof$3,767,whichwasthreetimeshigherthan

the$1,242graduationthresholdatthattime.Atthe2018triennialreview,Timor-Lesteconfirmeditsgraduationeligibilitywithalowerper-capitaincome($2,656),which,wasstillhigherthanthethreshold.Italsometthe

11TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

humandevelopmentindex(HAI)criterionwithascoreof66.6--marginallyexceedingthethresholdof66.0.

Inthe2021triennialreview,Timor-Lesteonceagainconfirmeditsgraduation;thecountry’sGNIper-capitaincomeandHAIscoreof69.5exceededthe$1,274and57.6thresholds,respectively.Ontheotherhand,thecountryhadyettomeettheEnvironmentalVulnerabilityIndexthreshold,attainingascoreof38.7,exceedingthemaximumgraduationthresholdof32.0.

Notably,Timor-LestehasmettheGNIper-capitaincomethresholdsincethe2015triennialreview,butthenumberhasdeclinedsubstantially,owingtothedownturninoilrevenueandslowgrowthofthenon-oilsector.Meanwhile,HAIhasmarginallyincreased,increasingapproximatelythreepercentagepointsin2021comparedto2018duetoareductioninunder-fiveandmaternalmortalityratesandincrementalincreasesinthegrosssecondaryschoolenrollmentratioandadultliteracyrate.FailuretomeettheEnvironmentalVulnerabilityIndexEVIthresholdreflectsthecountry’svulnerabilitytodisaster,lowagricultureproductivityandconcentrationofitexportsonorganiccoffee(seeannex1).

Timor-LestewasnotrecommendedtograduatefromLDCinthe2021triennialreview.Recommendationforgraduationisdeferredtothe2024triennialreviewduetocontinuedconcernsaboutthecountry’sabilitytoensuresustainabledevelopment.Theconcernsarecausedinparticularbythecountry’sdecliningGNIper-capitaincome,uncertainfutureprospectsinviewoftheexpecteddepletionofoilandgasfieldscurrentlyinproduction,possibilitythatfutureeligibilityunderHAIcouldbeaffected

2Overseasdevelopmentassistancewastiedwiththecountry’sLDCstatusandalsotosupporttheentireState-buildingprocessofthecountry.

bytheimpactoftheCOVID-19pandemic–asthemarginissmallbecauseofthehighincidenceofstunting,andthecountry’svulnerabilitytoshocksanddisastersduetolimitedeconomicdiversificationandqualityinfrastructure.

AsanLDC,Timor-Lesteisentitledtobenefitfrominternationalsupportmeasures(ISMs)suchasdevelopmentfinance,trade,technicalassistance,andtechnology,tohelpovercomestructurallimitationofproductivecapacityandprogresstowardssustainabledevelopment.Sinceindependencein2002,thecountryhasbenefitedgreatlyfromofficialdevelopmentassistance(ODA).2Intheearlyyearsofindependence,grantsupportswerecriticalfordevelopmentofhumanresources,institutionsandproductivesectors,suchasagriculture,tofacilitatestructuraltransformationandeconomicdiversification.Furthermore,sincethesigningofthefirstconcessionalborrowingin2011,theGovernmenthascontinuedtotakeadvantageofitslowdebttogrossdomesticproduct(GDP)ratiotoaccessmoreconcessionalborrowingforinfrastructuredevelopmenttofacilitatestructuraltransformationforsustainabledevelopment.Ontheotherhand,accordingtoValenzuelaandGunasekera(2020),dutyfreeandquotafreemarketaccesstodevelopedeconomiesisthemostsalientsupportmeasureofexclusivenon-reciprocaltradepreferences.Timor-Lestereceivesunilateralpreferentialmarketaccessfrommorethan10majoreconomies,includingtheEuropeUnionandtheUnitedStatesofAmerica,butthecountryhasyettofullymaximizethebenefitofthis;productioncapacityremainslimitedanditsexportstructureishighlyconcentratedonoilandgas.

12TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

ItisobviousthatLDCs,includingTimor-Leste,areconcernedthatgraduationwillresultinlossofISMsbenefits.However,manyperceivethatgraduationisassociatedwithapositiveeconomicinvestmentclimate,andasaresult,itcatalyseseconomicgrowth,tradeandemployment(ValenzuelaandGunasekera,2020).BasedonareviewofvariousempiricalstudiesonLDCgraduation,DraboandGuillaumont(2018)havefoundthattherearenosignificantnegativeimpactsofgraduationtograduatedcountries’economies.Theyfurtherhavefoundthatinspiteofsubstantialremainingvulnerability,graduatedcountriesareneitheratriskofregressingintotheLDCcategorynoristhereanyindicationthemtheirpaceofdevelopmentslowsaftergraduation.

Graduatedcountries’experienceandthesocioeconomiccharacteristicsanddevelopmentstageofTimor-LesteprovideextensivereferencestotheGovernmenttobetterformulatestrategiesandpoliciesformaintainingsustainableLDCgraduationanddevelopment.Hence,thefocusoftheremainingsectionsofthispaperareonstructuraltransformationandeconomicdiversificationtounderpinpreparationforasustainableLDCgraduationandprogresstowardssustainabledevelopment.

Thepaperhasninemainsectionsandisstructuredasfollows:thefirstsectionprovidestheGuillemotintroduction,sectiontwopresentsareviewoftheimplementationframeworkofthe2030Agendaandthestrategicdevelopmentplanwhileabriefsnapshotongenderequalityandwomenempowermentispresentedinsectionthree.SectionfourcontainsareviewofunderlyingconcernsoneconomicdiversificationandsustainabledevelopmentforLDCs.ThebenefitsofISMsandtheimpactoftheCOVID-19pandemicareoutlinedinsectionfiveandsix,respectively.Progressandchallengesofinfrastructuredevelopmentis

presentedinsectionsevenandsectioneightcontainsadescriptionofthecountry’sstrategiesforregionalcooperationtopromoteeconomicintegrationandtrade.ThereportconcludeswithadiscussiononpriorityareasandpolicyactionsrequiredforLDCgraduationandprogresstowardsachievingtheSDGs.

13TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

4.Reviewoftheimplementation

ofthe2030Agendaand

strategicdevelopmentplan

framework

TheUnitedNationsSustainableDevelopmentCooperationFramework2021-2025,whichreflectsthesharedcommitmentoftheGovernmentofTimor-LesteandtheUnitedNationsdevelopmentsystem,presentsanopportunityforacontinuedpartnershiptoaddressstructuralchallengesanddevelopaninclusiveandsustainableTimor-Leste.

Thisentiresection,therefore,provideshighlightsofthevisionofTimor-Lesteforsustainabledevelopment,progresstowardsimplementingthe2030Agenda,challengesinachievingtheSDGsandthecooperationframeworkwithafocusonoutcomesthatarecatalystsforstructuraltransformationandeconomicdiversification,suchasnutrition,foodsecurityandsustainableagriculture,sustainableeconomicopportunitiesanddecentworkforall,andaccesstoqualityofeducationandlife-longlearningoutcomesandskills.

2.1Country’svisionforsustainabledevelopment

The2030AgendawasadoptedbytheGovernmentofTimor-LestetwodaysafteritwasadoptedinternationallyattheUnitedNationsSustainableDevelopmentSummit.

TheSDGsweresubsequentlyratifiedbyaresolutionoftheNationalParliament.TheGovernmentusesawhole-of-governmentapproachtoimplementthe2030Agendaatthecountrylevel.Aroadmapfortheimplementationofthestrategicdevelopmentplanand2030Agendaframeworkwascreatedin2017.Sincethen,theframeworkhasbeenusedasabasisforagovernmentprogrammingexercise,whileoversightofitsimplementationiscarriedoutbytheSDGsworkinggroup–chairedbytheOfficeofthePrimeMinister

AlthoughthestrategicdevelopmentplanpredatestheformulationoftheSDGs,itisthecountry’sprimaryvehicleforachievingtheGoals.Underthestrategicdevelopmentplan,Timor-Lesteisenvisionedtobecomeanupper-middleincomecountrywithahealthyandeducatedpopulationby2030.Thestrategicdevelopmentplaniscomprisedoffourmainpillars:socialcapital;infrastructure;economicdevelopment,andinstitutionalframework.Genderequalityandyouthdevelopmentareincludedascross-cuttingissues.Theplanhasathree-phasedimplementation,whichhasbeensequencedandalignedwithSDGs,asshowninfigure2,TheutmostobjectivetheSDGSistoeradicatepovertyinallformsanddimensions.

14TIMOR-LESTE:structuraltransformationandeconomicdiversificationtowardsasustainablegraduationfromLDCcategory

NDSTRN

NTTUT

RTNERHSFRTHEG

LONG

MEDIUM

SHORT

Figure2:StrategicDevelopmentPlanandSustainableDevelopmentGoalsAlignment

EDCT

4

FFRDBENDCENENERGY

CTN

3CMTE

SDPPhaseI:POVERTYALLEVATioN,STRONGPRIVATESECTORANDECONOMICDIVERSIFICATioN

REDUED

NEQUTES

SUTNBECTES

DEENTRKND

2

NSMTN

NDRDUTN

RESNBE

2ER

HUNGER