The new nation of Timor-Leste started life in 2002 as one of the poorest countries in the world. Its economy remains weak and its government is learning its work "on the job". However, with support from USAID and other donors, Timor-Leste's democracy can look forward to a bright future. An important mechanism for USAID's support is its small grants program (SGP), implemented in Timor-Leste by Development Alternatives, Inc.

USAID is helping Timor-Leste's government develop the many systems needed to provide essential services to it citizens. One of the most important public services is health care. During the past year, USAID's SGP has awarded more than a dozen grants focused on improving the health of Timor-Leste's people. For example, nurse training projects have added almost 150 skilled nursing staff to clinics around the country. Nutrition support grants help the government and its partners reach thousands of people in areas where food supplies or incomes are inadequate for basic needs.

USAID grants also help the government's health workers fight serious endemic diseases, including malaria and dengue fever. SGP supported the government's education and spraying campaign to reduce the incidence of dengue fever in the seven hardest hit districts. It also funded the distribution of 40,000 mosquito nets aimed at providing a long-lasting, insecticide-treated bed net to every pregnant woman in the country. A new policy on supporting people with disabilities, developed under an SGP grant, is now being considered by the Council of Ministers.

USAID grants also support the establishment of independent oversight institutions and strengthen the government to fight corruption, protect human rights, and encourage good governance. Project activities have included public sessions on strengthening anticorruption sections of the Civil Service Act, developing the National Human Rights Action Plan, and improving transparency and accountability in government.

At the same time, USAID is active in strengthening the private sector, encouraging economic growth, and assisting the government as it develops important business-friendly policies and legislation. SGP supports training for Timor-Leste's young entrepreneurs, helps the government plan and establish its processes for working with the private sector, and fosters links with international investors. For example, sustained involvement by USAID in efforts to open a new candlenut factory helped secure two commercial loans and investment from an international buyer for candlenut oil. That support also helped the SGP grantee win a national award in the US for public-private business collaboration. Within the government, SGP-funded capacity building has meant that businesses and residents are benefiting from a stronger legislative and policy base for the private-sector and an improved service delivery system.

To help Timor-Leste develop its economic resources, USAID's SGP also provides expert advice and information on products most likely to meet success in the international marketplace. Several sectors are currently being researched, including specialty agriculture (nut crops and snow peas) and aquaculture (grouper culture).

By enabling the government to acquire vital skills and experience in important service provision and oversight areas, USAID helps set the stage for a strong future for Timor-Leste's young democracy.