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(1)

2016

Timor-Leste & Development

Partners Meeting (TLDPM)

Financing for Sustainable Development in

Timor-Leste

SDG 9, a Donor Perspective

Presented by : xxx

(2)

SDG Status in Timor-Leste

Most Timorese citizens do not have access to decent

employment.

To

change

this,

the

government,

development partners and the private sector must work

togethter to address 3 core challenges:

1. Increasing private investment

General improvement of business environment

Specific sector strategies

agriculture, tourism, industry

Financial sector development

2. Improving human capital and skills development

Primary education, health, nutrition

Relevant secondary education system

Market oriented tertiary training

3. Improving labor market regulation

Realistic minimum wage polices

Balance between worker protection and flexibility

(3)

Donor Portfolio in this Area

Area

Partners

Increasing Private Investment

Business enabling environment

ADB, World Bank Group,

Policies and investments for productive

sectors

ADB, Australia, China, EU, ILO, JICA, New

Zealand, World Bank Group, UNDP, USAID,

Financial sector development

ADB, World Bank Group, UNDP

Building Human Capital

Primary education, health, nutrition

Australia, Portugal, EU, UNICEF, WFP, World

Bank Group,

Secondary education

ADB, KOICA,

Tertiary education

Australia, Japan, JICA, New Zealand, USA

Labor Market Policies

Professional skills and work readiness

GIZ

Labor regulation

ILO

(4)

Suggested Way Forward for

Achievement/Implementation of SDG

Increasing Private Investment

Government strategies are sound

key issues are prioritzation,

sequencing, and quality of implementation.

Where sector policies are being developed / revised, need to have an

explicit focus on private investment with linkages to FDI promotion

Building Human Capital

Need to assess whether current investment in nutrition, primary education

and basic healthcare is sufficient.

Develop and implement appropriate policies for secondary & tertiary

education.

Use public investment in TVET to strengthen linkages between employers

and training providers.

Improving labor market regulation

Use new national survey data to guide review of minimum wage policy.

Work with employers to reduce costs of compliance with the labor code.

Facilitate the use of foreign labor to meet skills gaps while encouraging

skills transfer.

(5)

Areas for Improved Partnerships

Increasing private investment

 Addressing fundamental constraints – e.g. Land, property rights, contract enforcement, will have highest long run pay off. Important to prioritize.

 With approporiate supporting policies there is potential to use donor & government funded projects in agriculture, forestry, fisheries & tourism to

‘crowd in’ private investment. Need to work together to map policy requirments and resolve constraints.

 Ongoing financial sector reforms are well aligned to fundamental constraints. Potential for innovation but additional actions must be carefully designed.

Building human capital

 The government is expected to lead the provision of basic healthcare and primary and secondary education with financing and technical support from development partners.

 Supporting policies can leverage private expertize for tertiary education and TVET but still likely to require some public financing. Development partners can help to structure these linkages.

Improving labor market regulation

 National employment strategy will provide guiding framework for partnerships, supported by national conference in August.

 Develop information systems to manage/support migrant workers

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