Case Study Report: A Taste of Transformation in Timor-Leste
Executive Summary
Timor-Leste is one of the youngest countries in the world. The nation faces various hindrances to its societal development. Its citizens face disadvantages in access to health, education, and economic opportunities. The problem necessitated a multi-sectoral approach, including a private company Timor Global, the government, and the UN agencies such as UNICEF and WFP. The program is informed by the modernization theory that believes that injection of aid from donors in the form of training, economic investment, and education can jolt a society into economic growth (Kendall, 2010). The program run from 2009 to early 2013, achieving key objectives sought by the partners. The main aim of the project was to promote food and nutrition security in the country due to high levels of chronic and acute undernutrition witnessed. 58% of the population was experiencing stunted growth, especially children under five years from chronic malnutrition.
Analysis
Timor-Leste experiences poor public and private development in sectors critical to the economy. For instance, there is a high prevalence of illiteracy levels, with 49.1% of the women and 38.7% of the men being illiterate. The problem hinders economic development in both genders with especially the female gender facing additional challenges due to established cultural norms (International Monetary Fund & Timor-Leste, 2005). The country's economy faces reduced economic mobility because of the restrictive land ownership rights and access to credit and capital.
The restrictive economic environment has led to the development of an informal sector that does not contribute to the country's overall growth. The informal sector is dominated by women who sell small wares that often go unpaid or receive payment in alternative monetary modes. The absence of a legal framework and failure to attract foreign investors also hinders the development of the private sector.
The Public-Private Partnership (PPP) arose out of the need to promote maternal and child nutrition. One of the partners is Timor Global, a private company that is a local coffee producer. Other partners included the country's government and UN agencies WFP and UNICEF. The program was implemented in the districts of Manatuto, Baucau, and Oecusse (Andersen et al., 2013). It led to the development of an inaugural product Timor Vita that has gained popularity in the country. Timor Vita is a blended food supplement availing children under the age of five years and pregnant and breastfeeding mothers with vital nutrients necessary for healthy development.
The Program
The program focused on boosting local production of supplementary foods for children and mothers. The program provided a sustainable solution to the acute malnutrition problem facing the young country through the public-private partnership. The solution also sought to build local production capacity and food storage capabilities. The local populace participated in the development process of the product to suit it to the needs of the people of Timor-Leste.
Analysis of the Theory
Rostow’s modernization theory postulates that an injection of foreign aid could catapult poor countries into economic growth. He believed that development is an evolutionary process and follows five stages. The stages of development include traditional society, preconditions for take-off, take off stage, drive to maturity, and age of mass consumption (Rostow, 2013). Timor-Leste was a traditional society in 2009 exhibiting high malnutrition levels among its people, diminished access to modern industry and technology, as well as little capital to invest. There existed many cultural barriers to spur development in the tiny nation. The entry of the UN agencies sought to bring in expertise and modern practices in the form improved farming methods and industry. The country is now at the second stage of development due to implementation of the program, but still needs substantial investment and reforms such as developing a strong legal framework to reach the third phase, which is the take off stage. The malnutrition levels were high because of poor farming, storage, and production methods, but through the program the country is achieving food security. The theory influenced the design and implementation of the program as all the partners were able to establish the stage of development the country was in and the strategies necessary to boost economic growth.
Actors Responsibilities
The program was a social business, with each partner having an integral role to play. The primary aim was not to make profits but to benefit Timor-Leste and boost local production. The country is heavily reliant on imports to produce quality products. The main objective of the WFP partner was to provide technical assistance. The UN agency's main aim was to convert Timor Global's food production plant to world-class standards while training factory staff and suppliers to adhere to required quality procedures.
On the other hand, the ministry of health's role was to avail the processing and packaging machinery necessary to set up the production plant. Timor Global was in charge of the production of the product Timor Vita. Finally, the UN agencies involved in the program provided a generator to ensure production went on uninterrupted (UNICEF, 2013). Because of the benefits witnessed in the reduction of malnutrition and stunted growth levels, the government of Timor-Leste decided to invest $2 million in the project.
The private company not targeted the women and children segment, but also encouraging the young country’s economic growth. The company has boosted local farmers' capacity and provided direct employment in the factory because it does not view it as a profit-making venture but as a social responsibility program. The product developed through the partnership has a longer shelf life despite the costs of production being similar to those of imported substitutes.
Project Timeline
The partners decided to implement the program in late 2009. The program ending date was late 2013. The program received a much-needed boost in 2012, with the government of Timor-Leste investing $2 million to stabilize production (Sergio, 2012). The resultant product Timor Vita was distributed to all pregnant mothers and those breastfeeding and children between the age of 6-59 months (UNICEF, 2013). The access point was when mothers with young children were visiting health centers.
Measurement of Outcomes
The partnership is a good example of implementing sustainable food security programs and stimulating national economic growth. The underdeveloped country witnessed a significant reduction in stunting cases, estimated at 52% by 2014. This was a 6% reduction from 2009 levels when the program commenced (Food and Agriculture Organization of the United Nations et al., 2019). Similarly, after only a single year of implementation, the established plant was already producing at 30% of its optimal capacity enough product for approximately 64,000 people.
Timor Global considers this part of its corporate social responsibility rather than a profit-making venture. However, due to product acceptance in the market and growing demand, the product promises to be a profitable venture for the company. The partnership has highlighted the potential of improving food nutrition and security in the country. A pilot program is already in the works to incorporate fish into Timor Vita. Doing this will improve the nutritional value of the product while supporting the fledgling aquaculture sector. The aquaculture industry will enhance nutrition levels in the country while creating much-needed employment in resource-poor rural areas.
Conclusion
Despite all the gains, there are challenges still to address to boost the program's effectiveness. The country still relies on imports because of barriers that still exist in sourcing local raw materials. The country does still not have the potential to produce all the raw materials to produce Timor Vita to feed its entire populace. Corn Soya Blended Powder (CSB) is also still being imported. To overcome this challenge, the country still requires further investment (Andersen et al., 2013). International banks are still reluctant to invest in the country because of the high-risk factors and fragile economy. Many problems persist in the economy, despite the increasing investment in its private sector. The challenges include lack of access to markets, restrictive policies to accessing production assets, lack of access to capital, dependency on donors and government, poor distribution channels, and development of business and market-based business practices. Nonetheless, the program has the potential for sustainability and replication (Sergio, 2012). It combines private and public interests as a framework of corporate social responsibility. The economy offers plentiful business opportunities because most products continue to be imported despite the country having the potential for local production.
References
Andersen, A. B., Paint, J., and Thilsted, S. H. (2013). Food and Nutrition Security in Timor-Leste. WorldFish. Print.
Food and Agriculture Organization of the United Nations, International Fund for Agricultural Development., UNICEF., World Food Programme., & World Health Organization. (2019). The state of food security and nutrition in the world: Safeguarding against economic slowdowns and downturns.
International Monetary Fund, & Timor-Leste. (2005). Democratic Republic of Timor-Leste: Poverty reduction strategy paper: national development plan, road map for implementation of national development plan, overview of sector investment programs: strategies and priorities for the medium term. Washington, D.C: International Monetary Fund.
Kendall, D. E. (2010). Sociology in our times: The essentials. Australia: Wadswoth Cengage Learning.
Rostow, W. W. (2013). The stages of economic growth: A non-communist manifesto. London: Cambridge University Press.
Sergio, L. (2012). ‘Promoting Sustainable Food and Nutrition Security in Timor-Leste’ Final Evaluation Timor-Leste. MDG-F/UNDP, p. 7. http://mdgfund.org/sites/default/files/Timor%20Leste%20-%20Nutrition%20-%20Final%20Evaluation%20Report.pdf
UNICEF. (2013). Improving child nutrition: The achievable imperative for global progress.
