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                TIMOR-LESTE: COUNTRY PARTNERSHIP STRATEGY FY13 – FY17

                                          CHAIR’S SUMMING UP *

                                        Meeting of Executive Directors
                                               March 19, 2013


       Executive Directors discussed the joint IBRD/IDA/IFC Country Partnership Strategy (CPS) for
the Democratic Republic of Timor-Leste (R2013-0026[IDA/R2013-0032, IFC/R2013-0039]).

        Directors commended the Timor-Leste Authorities for a strong track record on stability,
economic growth and transparent management of oil revenues. Directors appreciated the wide
consultations held in preparation of the CPS, its alignment with the Government’s 2011-2030 Strategic
Development Plan, and the application of the lessons learned from the previous CAS and ISN.
Accordingly, Directors supported the simplification of project design and sequencing of key reforms, in
line with the findings of the 2011 WDR on fragility.

       Directors, however, urged the Government to strengthen its efforts to ensure that economic gains
are more inclusive and sustainable. In this regard, they recognized the challenges to building a
competitive non-oil economy posed by poor infrastructure, weak institutional and staff capacity, climate
change and natural disasters, and gender disparities.

        Directors welcomed the focus of the CPS on enhancing the quality of spending and institutional
capacity building including justice reform, noting that better planning and financial management will help
improve governance and direct resources to strengthen human capital, develop the private sector, and
enhance agricultural productivity and build sustainable agriculture and improved land policy. They called
for increased attention to poverty reduction, and efforts to target youth, women and those in the rural
areas so as to achieve measurable improvements in the living standards of the most vulnerable people.
The importance of knowledge, south-south cooperation, stronger monitoring indicators, and incorporation
of the gender assessment in implementation of the CPS was also emphasized.

        Directors encouraged continued strong cooperation of IBRD, IDA and the IFC, and the plan to
apply a full and flexible range of investment tools to adapt to new demands, complemented by technical
assistance in key areas such as public-private partnerships and investment policies. They encouraged
continued attention to strengthening donor coordination in accordance with the commitments of the New
Deal for Engagement in Fragile States.

           Directors looked forward to the Progress Report on the implementation of the CPS.




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    This Summary is not an approved record.