Decentralization process in Timor-Leste

1. Decentralization process inTimor-Leste How did it happen? Presented by: Miguel Pereira de Carvalho, National Director for Local development and Territorial Management, MSATM. Email to: miguelcarvalho76@yahoo.com Website: www.estatal.gov.tl

2. Country Context - History • Historical facts: • Portuguese colonial rule (1615 – 1975) • Indonesian colonial rule (1975 – 1999) • UN Transitional Administration (1999 - 2002) • Independence (2002) • Since Independence Timor-Leste has focused on establishing new national institutions and legal framework  still ongoing

3. Country Context - Legacy of the UN • The UN Transitional Administration was very centralized & the present system inherited many of the same features; • Very few timorese had high level management experience prior to 2002  lack of sufficient human resources remains a problem • Although the development process has started very little has happened outside the capital Dili; • Strong need to enforce service delivery outside the capital  the means to do so is through decentralization

4. Country Context - Decentralization • Work on decentralization & local government commenced in 2003  still ongoing • Constitutional commitment for decentralization: • Article 5 – “the State shall respect the principle of decentralisation of public administration” • Article 72 - Local government is constituted by corporate bodies vested with representative organs • Great optimism for this process since both the former and the new Government supports decentralization

5. Local Government Option Study (LGOS) • LGOS provided the ground for the needed discussion and decisions in regard to a LG system for TL; • The LGOS laid out six options and a methodology on how to evaluate the options vis-à-vis the objectives of Gov; • The success of the LGOS was that it did not make one recommendation, but provided room for internal discussions among key stakeholders  ownership of the final decisions

6. Local Development Programme (LDP) • Although LGOS provided the base, it did not succeed to bring all the skeptics over; • The decision to establish the LDP is therefore seen as a second key choice • The LDP has been successful – not necessary because of the capital investments – but because it has proven that local level: • is not necessary corrupt; • that capacity can be developed; • can make good decision; • can plan and implement their decisions; • is more efficient than we thought.

7. Lessons Learnt: • A key lesson from LGOS and LDP is that: • the combination of policy development and practical experiences needs to go hand in hand; • The process has to be owned by the Government; • The policy piloting has to be part of a Government framework and be channeled to the decision makers; • These factors has now been combined through LGSP; • Recent initiatives to strengthen its commitment to this process: • Establishment of National Directorate for Local Development and Territorial Management • “Take-over” of LDP as a fully funded Government programme  $2.3 million in 2010

8. Local Government Policy Policy II (March 2008) • One tier of local government = municipalities; • Using present District boundaries to establish the municipalities; • 13 Municipalities will be established; • Establishing Municipal Assemblies through direct elections • Headed by a Municipal Mayor; • Speaker will chair the MA; • Executive Secretary will run daily operations of the Municipal Administration; • Assigning appropriate service delivery functions to Municipalities; • Providing Municipalities with some authority over sector departments and their staff; • Providing Municipalities with appropriate financing and fiscal arrangements

9. From policy to legislative process and what yet to come 2002 2003 2004 2006 2007 2008 2009 2010 Former Government Policy on LG approved Submission of 3 Draft legislations to NP Aproval of Law on Administrative Division • New Government policy • TWG reports • 2“White papers” • 3 Law proposals • DSF 2 • National consultations • Aproval by CoM on Draft Laws Constitution Aproval of Local Gov Law adn Municipal Election Laws 1batch municipal elections LGOS & establishment of IMTWG • Approval DSF 1 • Sectoral TWG established • National consultations Practical lessons LDP (13 districts) Closing LDP

10. From policy to legislative framework - Decentralization Strategic Framework (DSF) • DSF or the decentralization road map has been key to our success… • So, why have DSF 1 & 2 been so important: • Provide an agreement on Government strategy on HOW to implement the LG reform process across Government Ministries; • Ensure coordination of activities across Ministries and other key partners; • Local understand of key activities and timeframe the LG reform

11. From policy to legislative framework - Decentralization Strategic Framework (DSF) • DSF 1: Legislative process – what needed to be done and how to get there • We got there – 3 law proposals submitted • Now the real work starts Implementation • DSF 2: Implementation of the reform – identification of follow-up activities such as: • Legal drafting (subsidiary legislation) • Fiscal framework and mechanics • Capacity building initiatives • Communications need and strategies • Allocation of Gov responsibilities • Framework for donor support • Timeframe of the reform process

12. Factors shaping policy –Lessons from Timor-Leste • Constitutional commitment and framework; • Urgent need for rural communities to participate in the national development process; • Poverty reduction and urgent need to deliver services in rural areas; • Need to open up the political space; • Combination of policy development and practical experiences through programmes like LDP; • Time;

13. Factors shaping policy –Lessons from Timor-Leste • But by the end of the day…. • …..and although majority of decision based on technical evaluation and recommendations…. • ….eventually decisions shaping the policy were political in nature and have depended on the knowledge and agenda of those participating!

14. Obrigado barak