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ECONOMIC GROWTH PROGRAM SUMMARY
USAID’s Accelerated Economic Growth Program in Timor-Leste promotes economic development and the revitalization of the private sector. A revitalized private sector will provide much-needed employment opportunities at all levels, from small farmers to entrepreneurs. In addition, USAID promotes the continued development of a business-friendly legal framework and regulatory environment, with the aim of reducing poverty and minimizing the country’s vulnerability to conflict. Agriculture U.S. assistance supports efforts to transform the agriculture system from its current subsistence nature to one that is commercially oriented and self-reliant by: identifying markets and linking producers to buyers; working with producers and farmers' organizations to increase output by adopting appropriate technologies; strengthening small-scale enterprises in villages; helping producers meet buyer specifications; introducing agricultural diversification through agro-forestry and livestock programs; increasing farmers' access to information and agricultural financial services and providing for additional agricultural education opportunities. Our long-time implementing partners in this sector are the National Cooperative Business Association (NCBA) and Development Alternatives, Inc. (DAI). NCBA, through the Timor Economic Rehabilitation and Development Project, is working to help farmers diversify their sources of income as well as improve their agricultural and business skills. DAI is helping farmers raise production through appropriate technologies under the Dezenvolve Sétor Privadu or “Private Sector Development” project. Both NCBA and DAI help link farmers and producers to markets and buyers. USAID added two new partners in 2006. Development of Candlenut Enterprises is a project implemented by Catholic Relief Services that targets 1,836 households in the east and south of Timor-Leste. Land O'Lakes is assisting with improving Timor-Leste's agricultural high schools through the Building Agribusiness Capacity project. Private Sector Competitiveness To raise productivity and establish a competitive business environment, USAID interventions are designed to: support a private sector advocacy group; ease business registration requirements; develop the capacity of the private sector to engage in improving economic policies and legislation; and secure property rights through the implementation of the land law. Through the Dezenvolve Sétor Privadu, DAI is working to build the critical market linkages that encourage enterprises to establish and grow. DAI is also expanding the range of financial and commercial services that strengthen businesses at all levels of the value chain. To further create an enabling business environment, USAID provides support to the United Nations Development Program for expert advisors to the Government of Timor-Leste in vital areas, including private sector development and international investment. Workforce Development USAID is actively building the capacity of Timor-Leste’s workforce. Through its Small Grants Program, SAID is funding initiatives such as practical literacy and numeracy training for small business owners and pilot entrepreneurship projects in rural areas. Following the recommendations of a conflict vulnerability assessment, USAID is initiating a skills development and on-the-job training program called “Youth Have Opportunities for Work,” which will increase employment and training opportunities for 2,500 youth.
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