JRH Address to Security Council (as written)

Timor-Leste, Challenges in Nation-Building and Peace Consolidation

By H. E. J. Ramos-Horta

President of the Republic

Nobel Peace Prize Laureate (1996)

Address to the Security Council

New York, 19th February 2009

Today Timor-Leste is at peace and our economy is doing very well with
more than 10% real growth at the end of 2008. With a 2009 budget of
US$680 million and US$200 million in donor assistance, I believe we
will be able to maintain a two-digit growth this year in spite of the
international financial crisis.

Mr. President, Mr. Secretary-General, Distinguished Members of the
Council,

Thank you for giving me the floor. It is always a privilege to speak
before this august body and in doing so I wish to reiterate my sincere
gratitude and that of the people of Timor- Leste for the steady
engagement by the United Nations in assisting us to overcome the
inevitable, predictable setbacks, all natural challenges, in
nation-building and peace-consolidation.

Your presence here Mr. Secretary-General honors and touches me as it
illustrates your strong commitment to the well-being of the people of
Timor-Leste and your determined leadership in ensuring that we
succeed.

I am pleased to be here in the company of the Secretary-General’s
Special Representative Dr. Atul Khare, someone who has earned the
gratitude and respect of all of us, leaders and common people, because
of his intimate knowledge of Timor-Leste, integrity and dedication. I
wish also to commend the international and national staff of UNMIT, in
particular UNPOL, for their self-less dedication to our country and
the cause of peace.

Almost exactly a year ago, 11th February 2008, I was in that dark
frontier between Life and Death. At this time doctors and nurses of
the Aspen Medical Center in Dili were operating on me and then I was
flown to the Royal Darwin Hospital where I was very well looked
after. The Almighty God decided to defer my departure from this Earth
and guided the hands of the doctors and nurses who operated on me.

Once again to the devoted doctors and nurses in Dili and Darwin,
family and friends, anonymous thousands around the world, leaders and
common people, of all walks of life and age, to ALL who prayed for me
countless hours, in my own beloved country and elsewhere, I reiterate
my eternal gratitude.

I wish also to reiterate my heartfelt gratitude to you,
Mr. Secretary-General, for your personal interest and concern about my
well-being, as well to the members of the Security Council for holding
an emergency session following the 11th Feb 2008 attacks on me and the
Prime Minister.

Mr. President,

I recall my appearance here before this august body on 5th May 2006,
as my country began the descent towards renewed social unrest. I said
then that Dili was a city on the edge, and fear was palpable. I
appealed to you then to take decisive action in preventing the worse.

Upon my return to Timor-Leste, I began intense efforts to bring about
dialogue and an end to the tensions and to prevent the worse from
happening. I met with all, and I emphasize ALL East Timorese actors,
in my attempts to bridge the divide, and I regularly briefed the
diplomatic community.

A meeting involving all civilian and military leaders was to be held
in the last week of May. However on 23rd and 25th May 2006, separate
but related violent incidents occurred compromising my efforts.

As the security situation deteriorated by the end of May 2006, the
East Timorese political and military leadership decided to put aside
our pride and appeal to friends to assist us immediately. Australia,
New Zealand, Malaysia and Portugal responded positively. Their prompt
response and the expeditious deployment of troops with credible force
and equipment can be classified today as a remarkable success and sets
a new precedent in peace enforcement history.

In August 2006 the Security Council established UNMIT with a robust
police component but without a peace-keeping force with airborne and
extraction capability.

As Malaysian and Portuguese Formed Police Units integrated the new
UNPOL, we negotiated with Australia, New Zealand and the United
Nations a unique tri-lateral arrangement that remains in force today
and has proved to be extremely effective.

I wish to register my appreciation for the decision of this Council to
renew UNMIT’s mandate until Feb 2010 as contained in the draft
resolution. In my view, the International Stabilization Force (ISF)
comprising Australia and New Zealand should be continued in tandem
with UNMIT’s own mandate.

I am here today in a much different, more positive and promising
scenario. In mid 2006, our country was sucked into the most serious
challenge and danger since 2002. As a result, our vulnerable economy
that had shown signs of recovery in 2005 contracted to below zero
growth. But as the crisis was eased out by the end of 2006, 2007 saw
some robust recovery with non-oil GDP estimated to have grown 8% in
real terms.

Today, Timor-Leste is at peace. The International Crisis Group’s most
recent report on the situation in Timor-Leste concluded that
“…security in Timor-Leste is strikingly improved.

Armed groups are no longer at large. The atmosphere in the streets of
Dili is far less tense”. Incidents ranging from assault to homicide
have significantly declined since 2007 in comparison with previous
years and even with some more established democracies. For instance, a
UN compilation of data comparing incidents of assault reveals that in
2008 there were 169.1 assaults per 100,000 people in Timor-Leste while
there were 796 cases recorded in two major industrialized
countries. During the same period and based on crime per 100,000
people, there were 3.2 cases of homicide in Timor-Leste and 5.6 in a
major industrialized country.

Our economy is doing very well with more than 10% real growth at the
end of 2008. With a 2009 budget of US$680 million and US$200 million
in donor programs, I believe we will be able to maintain two-digit
growth in spite of the international financial crisis.

Why and how do I make such an optimistic prognosis for our economy in
2009? We are an importing nation, importing basic foods like rice to
cement and steel. While our petroleum revenues will be significantly
reduced, so will our import bill as commodity prices fall. We have
strong liquidity in our Petroleum Fund, more than US$4 billion, which
we can draw from to continue to invest in strategic sectors of the
economy and thus fuel economic growth and relative wealth.

Apart from continuing a firm commitment to investing in Education and
Health, the 2009 budget shows that the total amounted allocated for
agriculture (US$34 million) and infrastructure (US$130 million)
increased substantially.

The 2007-8 food crisis was a wake up call to all of us. In a number of
comments then I said that we must not always react to crisis with fear
and despair but rather we must seize and turn them into opportunities.

In the case of Timor-Leste the food crisis prompted the government to
refocus attention on the agricultural sector with greater investment
in provision of high yield seeds, tractors and hand tractors, enabling
farmers to learn new farming techniques and expanding food
production. As a further incentive the government purchases locally
produced nonperishable produces like rice, corn, beans, etc above
international market prices. The purchased items are then
redistributed to hospitals, schools and vulnerable groups.

As a result of a timely and pro-active government intervention
Timor-Leste was able to avoid social unrest and instability and
further deterioration of the livelihood of the poor.

In the 2009 budget US$205m were allocated for major capital
development projects, including the building of a new national
electricity project to provide reliable and cheap electricity within 2
to 3 years for the whole country. This is a heavy-fuel based power
plant with new transmission lines that can be switched to gas and wind
power. However, we believe that even if we are able to operate with
gas and wind energy, Timor-Leste will continue to need a supplemental
support from heavy-fuel based energy.

There will be strict monitoring to ensure that the project will be in
full compliance with the World Bank environmental standards and the
Kyoto protocol. An international tender will be announced shortly for
an independent consultant to oversee the implementation of the project
in all its technical aspects as well as the environment impact.

In the next 10 years, the Government will have to mobilize around US$5
billion to build a new international airport (estimated cost: US$700
million), a new port (estimated cost: US$300 million) and a modern,
first class network of national and rural roads (estimated cost: US$1
to US$2 billion).

There are no shortcuts to development and modernization and there are
no miracles. I have told my good friend Prime Minister Xanana Gusmao
to be audacious, courageous, decisive, take risks and you will be
remembered as a Lee Kwan Yew (Singapore) or Muhammad Mahathir
(Malaysia), leaders with vision and courage who have transformed their
countries from conflict and poverty to peace and prosperity in one
generation.

As the Secretary-General notes in his Report, the events of 11th
February 2008 have resulted in a kind of ‘Watershed ’. We have turned
the corner. Let me share with you some facts.

Internally Displaced Persons

The visible calm and feeling of security in the country have enabled
the Government’s ongoing success with the National Recovery Strategy.

Fifty-eight camps out of 60 in 2006-7 have now closed. There are few
small remaining camps in Dili, which the Ministry of Social Solidarity
is working to have closed in the first months of 2009. The Ministry of
Social Solidarity, with the assistance of the UN is continuing to
address the needs of the IDPs and the receiving communities, as well
as monitoring the situation in receiving communities to see that any
problems that may arise as a result of the relocation will be
addressed in an appropriate manner.

The government led by Prime Minister Kay Rala Xanana Gusmão has, in
one year, managed to resolve many of the outstanding problems,
inherited from the 2006 crisis. In about one and a half year, the
situations related to IDPs, petitioners, pensions for the elderly,
vulnerable and former combatants of the national liberation, were
resolved.

Security Sector Reform

The security sector, reform and further development of our national
police and defense forces, has been my main concern and I have made it
a priority of my presidency. This commitment was already demonstrated
when I took office as Prime Minister in the midst of the 2006
crisis. Speaking then before our National Parliament I defined my role
as an army chaplain and pledged to heal the wounds of the heart and
soul - and not buy more weapons. I made it a priority to heal the
wounds within our police and defense forces, between the two
institutions, and between them and the people. I was conscious then
and remain so that only a healthy relationship of trust between the
two security institutions can ensure that the 2006 crisis will not
reoccur. I have continued in this effort as President in partnership
with the Speaker of our National Parliament and Prime Minister and I
believe we have achieved much since.

Today we can say with a degree of confidence that much of the
divisions within the two institutions have been resolved. This does
not imply that all the weaknesses and failings have been overcome. We
still have a long way to professionalize and modernize the two
security forces but I believe we can achieve our most ambitious goals
by 2012.

In line with the Government’s view that “the rebuilding of the
national police is a long undertaking, requiring national ownership
and continued international assistance” (Government of RDTL’s
Statement to the Security Council, 18 August 2008), key developments
in regard to Security Sector Reform have focused on greater
consultation and participation. With the assistance of UNMIT, and
following the signing of the Security Sector Review Project between
the UN and the Government of Timor-Leste, the government will
undertake a comprehensive review of the security sector.

A number of activities were undertaken last year to support the
strengthening of national institutions. In September 2008, a broad
spectrum of Timorese society, Police and Military personnel,
parliamentarians and government officials met together in a
government-initiated process to develop the National Security Policy
at the Asia Pacific Centre for Security Studies in Honolulu, Hawaii.

In an effort to canvas broader opinions and views, a nationwide survey
is being conducted on perceptions of security threats and of the
security sector in general. In December 2008, I and the Prime
Minister, with full support from UNMIT, co-hosted a Security Sector
Reform and Development Seminar. This seminar brought together a range
of diverse national and international actors to discuss topics such as
national security legislation and policy and was an important step in
developing a consensus vision on what Timor-Leste would like to
achieve in the security sector. Key legislation such as the national
security law, the national defense law and the internal security law
has been drafted.

The resumption of policing responsibilities by Policia Nacional de
Timor-Leste (PNTL) from UNMIT has sparked a calling for greater
training and logistical support from PNTL officers, ever-conscious of
their need to be prepared for the eventual overall resumption of
policing responsibilities from UNPOL. The establishment of assessment
teams, the handover of districts and Terms of References for a Joint
Technical Team (which will monitor the Transition process) are
currently being finalized.

With regard to handover in the districts, the decision will be based
on the attainment of four criteria: (a) the ability of the PNTL to
respond appropriately to the security environment in a given district;
(b) final certification of at least 80 percent of eligible PNTL
officers in a given district/unit to be handed over; (c) the
availability of initial operational logistical requirements; and (d)
institutional stability.

The PNTL and the Secretary of State for Security, together with UNMIT,
are finalizing the indicators that will be used to assess the overall
criteria. We are also discussing the work of joint assessment teams
that will determine whether a district or unit has achieved the
criteria. The hand-over itself will be of vital importance as a
confidence-building exercise for officers of the PNTL, but the
government also realizes that it is only one stage in the development
of a mature, professional, disciplined and neutral police force with
due regard for human rights and the rule of law.

Justice

In 2008, a number of key challenges faced the justice sector,
including insufficient capacity, issues with the makeup of the Court
of Appeal and insufficiently robust institutions.

However, despite these challenges, there were some significant
accomplishments.

The drafting and review of important legislation for the development
of the legal framework in Timor-Leste was completed. Draft laws
regarding witness protection, juveniles, the establishment of an
anti-corruption commission, domestic violence and the criminal code
are now for review and adoption before the Council of
Ministers. Efforts have been made to enhance cooperation between the
prosecution and police. This cooperation has been in regard to serving
notifications, a long awaited transfer of prosecution files to their
respective jurisdictions in two districts (Baukau and Oe-cússi) and
the consideration of an overall case management system which is hoped
will result in a significant increase in the number of criminal cases
processed. A strategy has also been formulated to further reform the
corrections service.

The Fight Against Poverty

The recent Timor-Leste Survey of Living Standards (TLSLS) conducted by
the National Directorate of Statistics and analyzed by the World Bank
has revealed that the incidence of poverty increased significantly
between 2001 -2006 from 36.3% to 49.9%. As a result of the decline in
the non-oil economy, in per capita terms, the real non-oil Gross
Domestic Product fell by 12% in the same period despite Timor-Leste’s
oil revenues increasing.

The next Survey will reveal the impact of the Government’s policies
currently being implemented. However, with increased Government
expenditure since the last quarter of 2007, non-oil GDP has increased
dramatically which will reverse the decline in per capita GDP shown in
TLSLS, hence should begin to reduce poverty levels. While poverty
levels seem to have increased in the years 2001 to 2006 I believe that
Timor- Leste remains on target to achieve the MDGs by 2015 if the
government and our development partners continue to work hand in hand
in enhancing support for rural development, job creation, public
health and education.

Other highlights from 2009 budget include vital social programs to
reduce poverty via US$96m in transfers for pension to support
veterans, elderly and disabled. In conclusion, Mr. President, what you
have heard from me are the natural and inevitable challenges facing
most developing countries and in particular post-conflict
communities. Nation-building and peace-consolidation are lengthy
processes that require patience and steady commitment by all. In
august this year we will mark the 10th anniversary of the Popular
Consultation” that brought about our freedom but also saw the complete
devastation of our country with its staggering human toll.

In the last ten years, with United Nations assistance and of our
friends, we began the painful process of healing the heart and soul,
building bridges of reconciliation among the fractured East Timorese
communities, building infrastructures and institutions, creating an
economy, and building bridges with our neighbors. Nation-building and
peace-building require vision and long-term, steady commitment. This
is true in my country and is equally true in Haiti, Palestine,
Somalia, Afghanistan, Sierra Leon, Liberia, Congo, etc. The list is a
very long one. The challenges are always overwhelming and might
discourage the weak and the impatient. Only the few who dare to dream
and act on their dreams of an ideal abode for all human beings will
see the fruits of their dream.

On my part I will do my best to relieve the burden of the
international community, not to betray your trust, as you have been
too patient and generous. I will do my best not to fail my people, not
to betray their trust.

For those who are too quick to make simplistic and sweeping judgments
about the perceived failures of the United Nations, I am here to
testify that we the East-Timorese much owe to the United Nations our
very existence.

A recent nation-wide survey conducted by the International Republican
Institute of people’s perceptions found that

- UNMIT had an approval rate of 75%;

- The Government 66%;

- The PM 79%;

- The PNTL 80%;

- The defense force 78%.

And for those in the Media and pseudo academics with a penchant for
using clichés like failing state” inserted in their sanctimonious
lectures on my country, I can only say, admittedly with some not well
disguised disdain, we are doing very well, thank you.

May God the Almighty and the Merciful Bless Us All.

END
Annex
- International Crisis Group Report
- UNPOL Comparative Crime Date Compilation (2007-8)
- Press Release, 7Feb09, Ministry of Finance, “The 2009 General State Budget for
Timor-Leste Promulgated”
- Timor-Leste IDPs Information, 2009, Ministry of Social Solidarity