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July 2006 Issue
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Uni trades skills with East Timor

 Trade Training

Jim Redden was winding up the second week of a trade and poverty-reduction training program in East Timor on April 28 when things turned ugly.

The senior program manager for the Institute for International Business, Economics and Law at the University of Adelaide saw first-hand the panic that swept through the streets of the capital, Dili, that day as demonstrators stormed the Presidential Palace.

The military unrest was sparked by the East Timorese Government's sacking of 600 soldiers from its 1400-strong force when they deserted their barracks, complaining of regional discrimination in promotions.

More than 21,000 people fled their homes that day as security forces fired on the crowd, killing five people and triggering a riot.

In the ensuing weeks, Australia dispatched two warships to East Timor, sending up to 1300 troops to help quell the ongoing violence and restore law and order.

Mr Redden, who returned to Adelaide unscathed, said despite the current unrest, Australia should not give up on its neighbour, but rather strengthen its support.

"This is not a country which is a failed state. Obviously it has problems - in particular poverty and unemployment both fuelling the current internal unrest. However it is still struggling with its newfound independence and people forget that just six years ago its leaders were fighting in the mountains.

"It is somewhat arrogant for Australian and other western leaders to talk of failed states and poor governance when East Timor has barely had time to recover from the trauma of the 1999 massacre. It is instructive to recall just how long it took countries such as America or Ireland to become independent and stable following protracted and bloody civil wars."

Mr Redden's institute was commissioned earlier this year to run trade training programs for the East Timorese over a two-year period, targeting a locally chosen cadre of high-ranking government officials.

The first program was held in late February and the second in April. Another program is scheduled
for August.

"The aim of the training is to build an understanding among senior East Timorese officials of basic trade policy principles. They need advice in making decisions about the use of tariffs and subsidies or the cost and benefits of free trade agreements so they can make informed decisions about economic policies for the long term benefit of their people."

The officials taking part in the training programs are from a range of departments and include the Development Minister, Abel da Costa Freitas Ximenes (East Timor's equivalent to our Trade Minister).

"The long term objective of the trade programs is to strengthen East Timor's ability to effectively negotiate and engage in regional and international trade forums."

Mr Redden said the East Timorese were struggling with some serious underlying problems, especially high youth unemployment.

"The Institute and the Timorese officials are exploring policies to deal with this. For example, over the next 25 years East Timor will earn an estimated $20 billion from oil and gas deposits. One priority should be to fund essential infrastructure and the skilling of young people in engineering, building and construction.

"There is also potential for a more educated local workforce to build careers associated with the mining sector and to develop a niche export market through cooperative fishing clusters.

"The government needs to invest in farming and agriculture, helping to improve productivity and food security."

Mr Redden said East Timor's tourism potential was untapped, with plenty of scope to promote the country as a destination for scuba diving, mountain climbing and bush walking.

"This is a country with huge potential and despite the current unrest we are confident of East Timor's ability to build a sound economic and political base in the long-term. We just have to be patient," he said.

Funding for the programs run by the Institute for International Business, Economics and Law has come from the United States Agency for International Development (USAID) and the program is coordinated through the International Development and Law Organisation based in Rome.

Story by Candy Gibson

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