https://sputniknews.in/20240810/how-can-india-support-timor-lestes-recovery-7991476.html
How Can India Support Timor-Leste’s Recovery?
How Can India Support Timor-Leste’s Recovery?
Sputnik India
Timor-Leste is crucial for India’s maritime security and surveillance because of its strategic position in the Indian Ocean, near major maritime routes such as the Malacca, Sunda, and Lombok Straits, according to experts.
2024-08-10T18:42+0530
2024-08-10T18:42+0530
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India established diplomatic relations with Timor-Leste early on, represented at its 2002 independence day by Minister of State for External Affairs Omar Abdullah and formalising ties in January 2003, while Timor-Leste has supported India’s UNSC membership and UN candidacies, although trade remains modest, with India’s exports far exceeding imports.“Portuguese colonial rule in Timor-Leste, characterised by 450 years of economic neglect and resource extraction for Portugal's benefit, has deeply influenced the nation's current developmental challenges, resulting in inadequate infrastructure, a weak education system, and an economy reliant on subsistence agriculture,” Nelson Madeira, former director and senior officer in Timor-Leste's Ministry of Tourism and Environment, told Sputnik India.Portugal's withdrawal in 1975 “left Timor-Leste without the necessary political institutions and governance experience, resulting in a power vacuum that led to conflict and the brutal Indonesian occupation”, he emphasised.India’s Role in Diversifying Timor-Leste’s EconomyGiven Timor-Leste's challenges in nation-building and economic development, “the Indian government can significantly aid in diversifying its economy by supporting growth in sectors such as tourism, agriculture, forestry, fisheries, and oil”, Madeira proposed.Timor-Leste's economy is largely agrarian, with 66% of households involved in subsistence farming and agriculture, contributing about 16% of GDP, with coffee being a major non-oil export.Despite this, agricultural productivity is low compared to other small island states, and the country faces severe food insecurity, ranking 110 out of 121 on the Global Hunger Index 2022, with a severity score of 30.6.Considering the food insecurity crisis in Timor-Leste, Madeira suggested that “India can support Timor-Leste in modernising its agriculture by providing expertise in irrigation, crop diversification, and post-harvest management, as well as collaborating on high-yield and climate-resilient crop development”.Since its 2002 independence, Timor-Leste has struggled with post-conflict rebuilding and now relies on the Petroleum Fund for over 70% of its revenue, which is expected to be exhausted by 2034.If the Greater Sunrise gas field development does not proceed as planned, Timor-Leste's financial stability is likely to face a significant crisis within the next decade.Madeira suggested that India could play a pivotal role by providing technical expertise and financial support to develop the Greater Sunrise gas field.He noted that “Indian public and private sector companies, such as ONGC Videsh Ltd. (OVL), could collaborate with Timor-Leste in gas exploration, extraction, and processing through joint ventures with Timor GAP”.These partnerships could focus on the exploration and development of the Greater Sunrise field, ensuring that Timor-Leste benefits from the revenues while minimising risks, Madeira affirmed.Madeira encouraged India to negotiate beneficial trade agreements with Timor-Leste to facilitate the export of Timorese products to India and other markets, helping the country diversify its economy beyond oil and gas.Similarly, by aiding in the development of Timor-Leste’s transport and logistics networks, “India could enhance both domestic connectivity and access to international markets, thereby boosting trade opportunities and supporting economic diversification,” he noted.Timor-Leste's Strategic Importance to India: Key Maritime Routes and Security Concerns“Timor-Leste holds significant strategic importance for India’s maritime security and surveillance due to its location in the Indian Ocean, just beyond the South China Sea and Indonesia, as it is situated along key maritime routes like the Malacca, Sunda, and Lombok Straits used by ships with varying draft requirements,” Captain (retd.) Kamlesh Kumar Agnihotri, senior fellow, National Maritime Foundation, told Sputnik India.Similarly, “Timor's strategic importance is heightened due to its proximity to the Wetar Strait and its location in relation to Ombai, further underscoring its significance”, he concluded.
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India established diplomatic relations with Timor-Leste early on, represented at its 2002 independence day by Minister of State for External Affairs Omar Abdullah and formalising ties in January 2003, while Timor-Leste has supported India’s UNSC membership and UN candidacies, although trade remains modest, with India’s exports far exceeding imports.
“Portuguese colonial rule in Timor-Leste, characterised by 450 years of economic neglect and resource extraction for Portugal's benefit, has deeply influenced the nation's current developmental challenges, resulting in inadequate infrastructure, a weak education system, and an economy reliant on subsistence agriculture,” Nelson Madeira, former director and senior officer in Timor-Leste's Ministry of Tourism and Environment, told Sputnik India.
The Portuguese employed divide-and-rule tactics to create ethnic and social divisions in Timor-Leste, all the while neglecting the development of a robust political system or local governance structures, the minister highlighted.
Portugal's withdrawal in 1975 “left Timor-Leste without the necessary political institutions and governance experience, resulting in a power vacuum that led to conflict and the brutal Indonesian occupation”, he emphasised.
India’s Role in Diversifying Timor-Leste’s Economy
Given Timor-Leste's challenges in nation-building and economic development, “the Indian government can significantly aid in diversifying its economy by supporting growth in sectors such as tourism, agriculture, forestry, fisheries, and oil”, Madeira proposed.
Timor-Leste's economy is largely agrarian, with 66% of households involved in subsistence farming and agriculture, contributing about 16% of GDP, with coffee being a major non-oil export.
Despite this, agricultural productivity is low compared to other small island states, and the country faces severe food insecurity, ranking 110 out of 121 on the Global Hunger Index 2022, with a severity score of 30.6.
Considering the food insecurity crisis in Timor-Leste, Madeira suggested that “India can support Timor-Leste in modernising its agriculture by providing expertise in irrigation, crop diversification, and post-harvest management, as well as collaborating on high-yield and climate-resilient crop development”.
Likewise, India can support Timor-Leste by “offering training in sustainable farming, agro-processing, and value addition, helping establish agro-processing industries, advancing sustainable forestry practices, and developing the fisheries sector through technology transfer, infrastructure investment, and collaborative marine research”, he suggested.
Since its 2002 independence, Timor-Leste has struggled with post-conflict rebuilding and now relies on the Petroleum Fund for over 70% of its revenue, which is expected to be exhausted by 2034.
If the Greater Sunrise gas field development does not proceed as planned, Timor-Leste's financial stability is likely to face a significant crisis within the next decade.
"India can significantly help mitigate Timor-Leste’s economic vulnerabilities, especially its heavy dependence on oil and gas revenues, as the country risks an economic crisis if the major offshore Greater Sunrise gas field remains undeveloped", Madeira recommended.
Madeira suggested that India could play a pivotal role by providing technical expertise and financial support to develop the Greater Sunrise gas field.
He noted that “Indian public and private sector companies, such as ONGC Videsh Ltd. (OVL), could collaborate with Timor-Leste in gas exploration, extraction, and processing through joint ventures with Timor GAP”.
These partnerships could focus on the exploration and development of the Greater Sunrise field, ensuring that Timor-Leste benefits from the revenues while minimising risks, Madeira affirmed.
Additionally, the former director mentioned that “India could also facilitate technology transfer in deep-sea drilling, LNG processing, and environmental management to help Timor-Leste maximise and sustainably manage its gas resources”.
Madeira encouraged India to negotiate beneficial trade agreements with Timor-Leste to facilitate the export of Timorese products to India and other markets, helping the country diversify its
economy beyond oil and gas.
To support Timor-Leste’s efforts in overcoming infrastructure and institutional challenges for sustainable development, the expert suggested that “India could offer credit lines or enable public-private partnerships to enhance infrastructure like roads, ports, and telecommunications, thereby boosting economic activity”.
Similarly, by aiding in the development of Timor-Leste’s transport and logistics networks, “India could enhance both domestic connectivity and access to international markets, thereby boosting trade opportunities and supporting economic diversification,” he noted.
Timor-Leste's Strategic Importance to India: Key Maritime Routes and Security Concerns
“Timor-Leste holds significant strategic importance for India’s maritime security and surveillance due to its location in the Indian Ocean, just beyond the South China Sea and Indonesia, as it is situated along key maritime routes like the Malacca, Sunda, and Lombok Straits used by ships with varying draft requirements,” Captain (retd.) Kamlesh Kumar Agnihotri, senior fellow, National Maritime Foundation, told Sputnik India.
Timor-Leste's strong security partnership with Australia, which is also its top aid donor, including military and police support, the former captain believes "might lead it (Timor-Leste) to seek India's assistance for political recognition and backing in achieving greater autonomy from Australia."
Similarly, “Timor's
strategic importance is heightened due to its proximity to the Wetar Strait and its location in relation to Ombai, further underscoring its significance”, he concluded.
