Donors back new state that lacks almost everything but happiness

EAST TIMOR: East Timor was granted its development aid wish yesterday

EAST TIMOR: East Timor was granted its development aid wish yesterday. More than 25 countries pledged support of over $360 million for an independence budget, which the World Bank described as "strongly pro poor".

At a pledging session in the octagonal parliament chamber, Ireland announced its (well-received) special package of $2.2 million for several projects including one focusing on gender equality. In Dublin the Minister of State at the Department of Foreign Affairs, Ms Liz O'Donnell, said the package was "an initial response" to the idea of strengthening Ireland's role in East Timor.

As the head of the UN's transitional administration, Mr Sergio Viera de Mello, prepared to move out of his office today to make way for President-elect Xanana Gusmao, East Timor's third international donors' conference ended with applause for the new government's National Development Plan, which allocates 48 per cent of the core budget to health and education by 2005. By that time oil revenues are expected to be flowing.

"This is one of the highest allocations to social sectors in the world and is a concrete reflection of the Timorese commitment to development," said the World Bank director, Mr Klaus Rohland. The support means the country will have access to $440 million during the next three years.

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The main focus was on whether the donors would come up with $30 million for each of the next three years to cover a budget deficit of $80-$90 million. They did. Mr Rohland said he expected East Timor to be "economically independent" in three years.

Its Chief Minister, Mr Mari Alkatiri, said: "There may be few examples of a country on the eve of independence which has placed the responsibility for articulating a national vision in the hands of the people, and which has been able to engage in a debate about the contribution of all sectors of society to national development." The plan, based on seven months of consultation with the people, describes its completion as "a watershed event in the history and development of the world's newest nation".

The consultations were funded by Ireland Aid, which has an office in Dili. Announcing Ireland's aid package in Dublin, Ms O'Donnell said it marked "the Government's initial response to the recommendation of the Ireland Aid Review Committee that our aid programme in East Timor be strengthened".

Confirming that planning was "underway for an East Timor country programme to build on the interim strategy with which we have been supporting the transitional administration in Dili", she went on to praise "the lead role played by Mr Tom Hyland" and his solidarity group. Mr Hyland said in Dili the package was "very good news" but pleaded for East Timor to be made a special case with long-term engagement.

At yesterday's pledging session Ms Fionnuala Gilsenan, head of the Ireland Aid office in Dili, said $1 million of the package was being channelled through an international trust fund in support of implementing key areas of policy. A further $800,000 was to help fill "critical technical posts" in Timor's public service.

Another $150,000 is for a Commission for Reception, Truth and Reconciliation, which will be similar to that in post-apartheid South Africa. (Some observers here believe this process will be followed by an amnesty from President Gusmao.) The Office for the Promotion of Equality is to get $100,000, and $150,000 is "for small projects with quick impact". It will be administered directly by the Ireland Aid office to help communities recover from the still-visible signs of the September 1999 destruction by Indonesian military-sponsored militias, who killed over 1,000 people.

About 1,000 VIPs are expected for the independence celebrations this weekend. At a press conference yesterday Dr Jose Ramos-Horta, the incoming Foreign Minister, said they had to discourage many from sending large delegations because of shortage of hotel rooms and transportation. Mr de Mello has said: "Some of them will have to sleep under the trees."

Asked by The Irish Times how many Indonesian soldiers President Megawati Sukarnoputri was likely to bring for her security, Dr Ramos-Horta said he did not even know yet how many officials would be with her or how many hours she would stay.

President Gusmao - he said "Xanana" - would accompany her to an Indonesian military cemetery, which is opposite the Santa Cruz cemetery, site of the 1991 massacre.

Meanwhile, as expectations for the weekend's international madhouse mount - with President Bush confirming he is sending Mr Bill Clinton - monsoon rains crashed down and children danced on the beach. The Turismo Beach Hotel's power went off - this time before dark - and the hotel's private generator kicked in as usual.

It happens every night in this country that lacks almost everything except happiness.