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DATE=6/30/2000 TYPE=BACKGROUND REPORT TITLE=REBUILDING EAST TIMOR NUMBER=5-46593 BYLINE=STEPHANIE MANN DATELINE=WASHINGTON CONTENT= VOICED AT: INTRO: International donors have pledged hundreds of millions of dollars to help rebuild East Timor's economy. But Timorese and aid workers agree the benefits of those pledges have been too slow in materializing. V-O-A's Stephanie Mann reports on the problems in rebuilding East Timor. TEXT: East Timor's economy has never been especially strong. For more than two decades under Indonesian control, it was dependent on subsidies from Jakarta. East Timor's only viable product on the world market - - coffee -- was managed by Indonesian-run companies, with few revenues staying in the territory. Last August and September, the local economy was devastated by the violence that followed East Timor's referendum on independence. Pro-Jakarta militiamen rampaged through the territory, killing hundreds of people and leaving much of East Timor in ruins. Then, when Indonesia relinquished control and withdrew from the territory, East Timorese who worked in the Indonesian-run administration lost their jobs. The United Nations stepped in to oversee East Timor's reconstruction and to administer the territory until it can handle full independence. The international community has pledged 536-million dollars in aid to East Timor, and so far, the money has been used to rebuild roads and re-stock medical clinics. The vice president of a non-governmental organization trying to help in the reconstruction, Lelei LeLaulu (le-LAY le-lah-OO-loo,) says the East Timorese people welcome the pledges. But he says they expect faster results. /// LELAULU ACT /// There is feeling among some sectors of the East Timorese community that these pledges and promises have not materialized in quite the way they would have expected it, or with quite the same dispatch that would have been expected from multilateral sources. ... And there's also misapprehension that perhaps a lot of this money is going into the United Nations' coffers and not being passed on ... /// OPT /// And as you can imagine, people in East Timor with very little in the way of belongings and without a job, they can get a little bit upset if the word spreads around that these very large expensive four-by-four (EDS: four-wheel drive) machines being driven around by international staff were paid for by the money that was pledged for the people of East Timor. /// END OPT /// /// END ACT /// Mr. LeLaulu is with the East Timor Development and Reconstruction Organization. He says the people of East Timor desperately need jobs and training for those jobs. Mr. LeLaulu says the number of unemployed is rising rapidly, especially in the capital, Dili. /// BEGIN OPT /// /// LELAULU ACT TWO /// Apart from those few who are employed by the multilateral organizations and other institutions in East Timor, there's very little around. And what's happening in the country, the rural areas, the agricultural development is not moving as quickly as it should, so people are being drawn into Dili, which is already overcrowded and full of people without jobs. /// END ACT /// /// END OPT /// Mr. LeLaulu says East Timor needs a rapid infusion of cash at the local level so people can rebuild their own businesses. That has not yet come from the international donations, he says, so East Timorese Nobel Prize recipient, Jose Ramos Horta, decided to do something on his own. Mr. Ramos Horta has offered to put up the prize money from his 1996 Nobel Peace Prize to provide small-scale loans through what is called a micro- credit facility. The chief U-N administrator for East Timor, Sergio Vieira de Mello, calls the slow pace of reconstruction exasperating. At a recent news conference in New York, Mr. Vieira de Mello described the problems affecting one area of East Timor. /// VIEIRA DE MELLO ACT /// I visited Suai, a southern district, in the wake of the heavy flooding, which took place there at the end of May. And what I saw was truly depressing. The district is now cut off from Dili by land and is likely to remain so for at least six more months. The people, already traumatized by the violence of last September, of which they bore the brunt, must now also face the reality that even their temporary homes and remaining few possessions have been destroyed, washed away by the flood waters. We must accelerate our rate of reconstruction. /// END ACT /// /// OPT /// The U-N official says decisions about East Timor's development soon will be made by a committee with participation by East Timorese, so they can help plan which projects should take priority. /// END OPT /// East Timor's problems go beyond short-term reconstruction projects, according to James Clad, a professor of Southeast Asian studies at Georgetown University in Washington. Mr. Clad says there is a question whether East Timor, as an independent country, will be able to generate economic growth rates high enough to meet the people's expectations. /// CLAD ACT ONE /// Some of the things that have to be answered are the longer-term revenue sources, if this place is going to be anything more than a subsistence economy. ... There's the broader question of what does Timor have to sell on the international market? And there's a lot of quarreling going on between different families and groups as to which groups are going to control the coffee proceeds, which is really the only thing that's prize-worthy in the territory's economy. /// END ACT /// He says hopes that offshore gas and oil reserves will provide sizeable future revenues may be unrealistic. Professor Clad says another potential problem for East Timor is that tensions among clans or religious or political groups may discourage needed international support. /// CLAD ACT TWO /// And the problem is that if after becoming an independent state, the politics degenerate into some kind of factional feuding, there's very little tolerance in the international community for carrying these people. And it would be the dumbest thing the East Timorese could do, but I'm afraid there's a pretty high risk they'll do it. /// END ACT /// Mr. Clad says over the past 20 years, western countries have suffered from what is called aid- fatigue or compassion-fatigue, which he says has meant a reduced willingness to give aid to the developing world. He says the East Timorese must be careful not to undermine what goodwill is still there to support their cause. (Signed) NEB/SMN/JP 30-Jun-2000 10:48 AM EDT (30-Jun-2000 1448 UTC) NNNN Source: Voice of America .





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