Accelerating Inclusive Economic Growth in Timor-Leste: Assessment of Opportunities for Inclusive Economic Growth in Timor-Leste

The country's Strategic Development Plan (SDP) 2011-2030 outlines the government's vision to transition to an upper-middle-income country by 2030, with a healthy, well-educated, and safe population. The SDP emphasizes the importance of economic development in achieving this vision. Agriculture is a key sector in Timor-Leste's economic development plan, with a focus on increasing crop yields and improving agricultural productivity. The government aims to increase agricultural production and reduce poverty in rural areas. To achieve this, the government has implemented various initiatives, including the development of irrigation systems and the introduction of new farming techniques. Tourism is another important sector in Timor-Leste's economic development plan. The government aims to develop the tourism industry to create jobs and increase revenue. To achieve this, the government has implemented various initiatives, including the development of tourist infrastructure and the promotion of cultural heritage sites. Petroleum is also a significant sector in Timor-Leste's economic development plan. The government aims to develop the petroleum industry to increase revenue and create jobs. To achieve this, the government has implemented various initiatives, including the development of oil and gas infrastructure and the promotion of petroleum exploration. The USAID/Timor-Leste Economic Growth (EG) portfolio currently focuses on value chain agriculture activities in the western uplands and marine-based conservation activities in the coastal regions of the most eastern district. However, the government and USAID/Timor-Leste are shifting towards a more focused and concentrated approach that seeks to build the capacity of the people and institutions responsible for the country's development. The assessment focused on a future integrated project design that will serve as the principal contribution towards the Mission's intermediate result (IR) 1: Inclusive economic growth accelerated in selected sectors. The EG-focused IR 1 has two sub-IRs: increased ability of individual citizens to engage in the private sector, and increased productivity of selected value chains with integrated global climate change adaptation and nutrition considerations. The recommendations in this report take into account USAID's corporate priorities as articulated in the USAID Policy Framework 2011-2015 and in the USAID/Forward reform agenda, as well as sector-specific and crosscutting policies that guide implementation. The report provides a comprehensive summary of recommendations as to where USAID could most effectively place its resources to accelerate inclusive economic growth in Timor-Leste. The assessment identified several opportunities for inclusive economic growth in Timor-Leste, including the development of the agricultural sector, the promotion of tourism, and the development of the petroleum industry. The report also identified several challenges and gaps in the current economic development plan, including the need for improved infrastructure, the need for increased investment in human capital, and the need for more effective governance and institutional capacity. Overall, the report provides a comprehensive analysis of the current economic development plan in Timor-Leste and identifies opportunities for inclusive economic growth. The report also provides recommendations for USAID/Timor-Leste on how to most effectively place its resources to accelerate inclusive economic growth in the country.