One of the most complex and contentious issues faced by Timor-Leste is that of formal land tenure. More than 400 years of Portuguese administration was followed by 24 years of occupation by Indonesia before the country gained its full independence in 2002. The result of centuries of foreign control is a pattern of overlapping or conflicting land claims that can inhibit economic development and cause conflict.

USAID implementing partner Associates in Rural Development (ARD) has been working with Timor-Leste's government to help it develop land-related policies and legislation to establish clear land tenure and property rights. An important step in that process has been to study how land rights are exercised by communities themselves. One of these case studies is of land use near Laga, in the eastern part of the country, where traditional land tenure involves the successful exploitation of a renewable natural resource.

The Laga Lake produces hundreds of tons of salt every year from the brackish water replenished by the tides. The salt harvest belongs by custom to the descendents of local chiefs (liurai). According to the current traditional chief, the Portuguese issued formal title to his ancestors, and the community recognizes this claim. Each year, up to a thousand people join in the salt harvest. At the end of each day, the harvested salt is divided into two equal portions. One half goes to the traditional owner; the other half is split among the workers. Such management of the harvest helps the traditional owner and the community gain maximum yield with minimum effort.

Government recognition of such traditional systems can help formalize and improve them. With a legal basis for the system, participants have an outside forum to air grievances, and external investors can identify the legally recognized representatives for negotiations and contracts. This would encourage the community and the traditional owner to manage their resource sustainably and protect its potential for future generations.

USAID has supported ARD's Land Law Program since 2002. The program assists the government in developing its policies and legislation on private property and has helped the National University of Timor-Lorosa'e establish a certificate program in applied social science research methods. By encouraging a more stable and transparent business environment, USAID helps Timor-Leste expand its private sector and rebuild its economy.