Since Timor-Leste’s independence there has been a range of proposed solutions to Oecusse’s
newly created isolation, especially in relation to the district’s economic development and
security. Oecusse is cut off from the remainder of Timor-Leste and from many communities
with which it has strong socio-linguistic and trade ties but which now are effectively
‘across the border’. Moreover, access to the territory is severely limited, with only a ferry
providing regular public access from Oecusse to the remainder of Timor-Leste and poor
communications infrastructure within Oecusse. The challenges facing Oecusse are, to say
the least, immense.
The current discussions on economic development options for Oecusse can be classified
into two categories. The first is comprised of initiatives which, it is argued, would boost the
productivity and profitability of Oecusse’s current economic base. Agriculture, including
the commercial cattle sector, features strongly within this category, as does the argument
that Oecusse needs to revive its long-extinguished forestry industry, albeit along sustainable
lines.
The second option discussed with regard to economic development in Oecusse represents
a substantial break with past practices. This approach is essentially one of applying various
incentives to attract investment from outside the district, primarily from overseas but also
from the small pool of East Timorese citizens with the means to start private enterprises.
Potential sectors identified for such investment include low or unskilled manufacturing,
export processing, food and beverage processing, and various models of tourism
development.
Cutting across both of these broad approaches are questions related to the border,
which impact the ability for economic development and also the provision of security
in the enclave. The longer-term economic development of Oecusse will require a clear
set of integrated programs that address issues of trade and the movement of people, in
conjunction with clear and reasonable border policies.
Although only a minority of the Oecusse population has experience with formal
employment-based economic activity, the research for this report indicates attitudes toward
almost any form of job creation as overwhelmingly enthusiastic, particularly among young
people. However, there is little indication that the costs of future development—such
as exploitative labour conditions, spin-off industries that jar with local customs and
values, exclusion of women from the job market, and environmental impacts—have been
considered adequately. For a variety of reasons, a degree of sensitivity surrounds discussion
of possible directions for Oecusse’s future development, making debate more difficult.
The aim of this report is straightforward: to provide a brief overview of the current
discussions relating to the socio-economic development of Oecusse. This is not to say that
these discussions are the most appropriate or should be as dominant in public debate as
they currently are. However, on talking to a range of people in government, civil society
organizations and from the Oecusse community, there were four issues—governance and
autonomy, Special Economic Zones (SEZs), agriculture and forestry, and border issues—that
people often felt were critical. When writing a report such as this in a brief period of time,
researchers tend to concentrate their time on the most resourced people and organizations
in any given society, as this is where forms of easily accessible information are readily
found. As such, this report tends to reflect the views of a particular set of people—a
point that suggests the need for a much lengthier study in Oecusse so as to enable a
broader gathering of perspectives. Within these limits, we hope this report will be a useful
introduction for members of government, international development and other agencies,
the donor community, the public, and students who may be unfamiliar with the different
debates surrounding Oecusse. We also hope that this report can be used to understand both
what is currently being given priority to in relation to territory, and equally, what is not.
We understand that with the election of a new government in 2007 much may change over
the coming years. However, we feel that many of the issues discussed in this report will
continue to be relevant for the foreseeable future.