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Financial Inclusion and Trade

People living mainly in the subsistence sector in any country have difficulty inunderstanding the value of money, how it operates, and how to make the bestuse of it in investment. Financial Inclusion programs can teach people a great

deal about saving, managing and investing their money for improved livelihoodsand enable them to have access to affordable savings accounts, credit facilitiesand financial advice.

More local trading networks need to be created in the case of many products andagricultural commodities produced locally, to improve the return to producers andimprove the access of Timorese consumers to the variety of products producedlocally. Only after these local financial and trading networks have beenestablished, will foreign investment and international trade bring the optimaladvantage to most Timorese.

According to Dr Jen Drysdale, a speaker in this stream, the quality of a financialinstitution such as the Petroleum Fund depends a great deal on the developmentof human resources and social capital. She believes that Timor needs to focuson these, rather than on building an oil industry at this time.

Recommendations to the Government

Help credit co-operatives, savings and loan societies and othermicrofinance institutions empower people to have control over their ownmoney and not be dependent on Government to improve their productivityand quality of life.

More training should be available on cooperatives and financialmanagement,

A new legal framework is needed to regulate micro finance services.

Human capital and social capital are the most important qualities neededto boost quality of financial institutions.

Young people should have access to financial knowledge through theschooling system and to savings accounts in their local community.

A revision of the development plan which was done in 2001 2005 isneeded, it should be an integrated plan. Institutions of government shouldbe coordinated in the plan and its implementation

Government should act in accordance with the Petroleum Fund legislation,and not use more than 3% petroleum fund in one year.

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There is no contradiction between using the Petroleum Fund for presentand future generations. Both can be done by investing in educationalinstitutions and appropriate infrastructure. Timorese must use their head,heart and hand to work on developing these institutions.

Government is urged to review the strategy of its purchasing programPovo Kuda Governu Sosa, which could reduce local initiative and createdependence.

Radio should be better used to broadcast information on prices and otherinformation of value to farmers.

Improve access to affordable telecommunications to help build localmarkets.

Open up more local markets in rural areas so producers do not have to

bring all their goods to Dili.

Recommendations to Civil Society

Investigate the possibility of Community Supported Agriculture in Timor-Leste where urban customers pre-pay for fruit and vegetables to bedelivered regularly by farmers.

Promote use of techniques such as participatory budgeting to encouragecivil society to discuss logically how Timors financial assets should bespent.

Promote the establishment of a consumers association to educate peopleabout consumers rights and provide information to the public about all thebanking organizations operating in Timor-Leste, including their chargesand fees.

Recommendations to Citizens

Promote consumption of fish and other local products in the community

People should be encouraged to buy products in their local district rather

than always transporting goods from Dili.

Producers should be encouraged to organize co-operatives to facilitateaccess to transportation and markets

Recommendations to the International Community

Help in the area of marketing Timorese products, such as fair trade coffee,honey, soap, salt and handicrafts

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Provide technical support for the establishment of a formal sector fishingindustry (such as with larger boats, refrigeration etc.)