As the economic advisor to Timor-Leste's Prime Minister Mari Bin Amude Alkartiri, senior economist Jose Garcia-Medrano works with senior government officials to help them shape important macroeconomic policies and practices for the new country. Through these high-level policies and practices, the government is addressing Timor-Leste's toughest economic challenge: poverty reduction.

"The problem of poverty is a multifaceted one involving economics, education, infrastructure, and institutions," Garcia-Medrano explained. He assists in a number of areas, including:

• improving the process of the government's budget preparations
  
• increasing the efficiency of public expenditure management
  
• maintaining macroeconomic stability
  
• supporting a strong private sector and enabling legislation for it
  
• establishing policies for the development of Timor Sea resources and a prudent savings policy for the revenue.
  

"What the government is aiming at in its new policies and laws," he said, "is the promotion of an efficient environment for sustainable economic growth over time."

"The most interesting and challenging trait of working in this capacity in Timor-Leste is that after the period of violence and destruction in 1999, a new country is emerging, and I am part of that building process," he said. "The Timorese are facing the difficulties of starting from scratch. The advantage is that they did not have to demolish any existing dysfunctional institutions. They can analyze the examples of other countries, such as those in Southeast Asia and Africa, and adjust the construction of economic, political, and social institutions to the needs and realities of their country. Most relevant of all is that they are working very hard to reach these goals."

Garcia-Medrano feels that one of his key contributions has been in public expenditure management and budget execution. He is a member of the prime minister's Commission to Monitor the Execution of the Public-Sector Budget. He is also actively involved in the government's cooperative work with international donor organizations, participating in discussions about the Transitional Support Program and the preparation for the annual donors meetings. Over time, donor assistance will be replaced in part by revenues from Timor Sea resources. "An important challenge for Timor-Leste is how to devise a policy to use oil and gas revenues efficiently in the present and how to save some of that revenue stream to satisfy the needs of future generations."

Garcia Medrano is an economic expert for the Louis Berger Group, Inc., a USAID implementing partner in Timor-Leste. USAID supports Garcia-Medrano's work in the Office of the Prime Minister to help Timor-Leste's government promote strong and sustainable economic structures through policy-making, capacity-building, and legislation.