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Highlights of the meeting Timor Leste Ministry of Finance and the Brazilian Delegation

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Highlights of the meeting

Timor Leste Ministry of Finance and the Brazilian Delegation

On 3 February 2012

Agenda

Exploring the possibility of cooperation between Brazil and Timor Leste in the area of Public Finance Management.

 Venue:   Office of the Vice Minister, “Green House”.

In attendance

Timor Leste MOF:

  • HE Rui Manuel Hanjam (Vice Minister of Finance, as the Chair of the meeting))
  • Santina JRF Viegas Cardoso (Director General of Corporate Services- MOF)
  • Mateus do Rosario Cabral (Chefe Gabinete of the Vice Minister)
  • Sandra Marques (International Adviser at the Office of the Vice Minister)
  • Oscar Belo (PRLC- National Adviser at DGCS)

Brazilian Delegation

  • Ambassador :  HE Edson Monteiro, Head of Delegation
  • Percio Marco Antonio Davison, Chefe Gabinete da Presidencia da Republica, Brazil;
  • Prof. Ricardo Wahrendorf Caldas, PhD, Universidade de Brasilia- Centro de Estudos Avancados Multidisciplinares (Ceam);
  • Nerylson Lima da Silva, Director General of the School of Public Finance Administration- ESAF- Ministry of Finance;
  • Paulo Barbosa Lima- Gerente de Cooperacao Bilateral- PALOP e Timor Leste
  • Izabela Pereira- Analista de Projectos de Cooperacao Internacional- Agencia Brasileira de Cooperacao
  • Others – undefined

In the opening remarks, Vice Minister thanked the Brazilian Delegation for coming to the meeting and for the Brazil’s aid assistance in various areas of development including particularly in the education sector.

Vice Minister indicated that the possible areas for cooperation may include:

  • Portuguese language training for Customs and National Petroleum Directorates staffs. He emphasized the importance of this kind of training to overcome language barriers in relation with their day-to-day roles, in particular in connection with the legal documents that most of them are written in Portuguese language.
  • In the area of macro economy – VM informed that the MOF macro economy staffs have been providing useful macro economic analysis as essential ingredient of the Budget Elaboration.

In addition, DGCS Santina recognized the complexity of the macroeconomic roles currently undertaken by Directorate General for Policy Analysis and Research; therefore the area still requires lots of capacity building to better carry out their tasks. To this end, as she informed, the ministry has sent many Timorese scholars to Australia, Indonesia and India under the PDP program to strengthen the capacity of the staff in the areas of economy, accounting, statistics and IT respectively.

Similar to Vice Minister’s recommendation above, DGCS reiterated the need of having Portuguese language training for Customs and Petroleum Directorates staffs to overcome language difficulties in the future. She also informed that the MOF training programs have been focusing on PFM (Public Finance Management) areas aiming to enhance all MOF staff capability to understand and work on the PFM systems currently applied in the country.

VM added that the macro economy directorate in the DGPAR has been providing useful macroeconomic analysis as essential part of the National Budget elaboration of which inflation is one of the critical issues to be taken into specific consideration.

Brazilian delegation responded to the VM and DGCS comments that Brazil also had undergone difficult situation over inflation in the past. As result, Brazil developed a macro economy study that is oriented to “applied economic policy”. Under this study that was conducted by“ Instituto Geografico de Estatisticas”, the country was able to analyze the conjunctures of the economy of the country, hence be able to deeply understand the reality in the ground in order to set up the proper economic policy, with the so-called applied economy policy.

Brazil is ready to mobilize its technical economic team to Timor Leste to support the area and for the time being the delegation is ready to discuss the issue in details in the coming days.

Vice Minister informed that he had similar experience relating to applied economic policy when he headed a team to liaise with the Indonesian experts led by Prof. Armida A.,  the current Indonesian Minister for Planning /  Head of BAPPENAS who also strongly recommended  the use of applied economic analysis to better respond to the current economic and development needs.

In this regards, VM proposed that the two countries can share experiences and exchange technical teams to carry out study visit to Brazil and Timor Leste, as part of the cooperation.

VM also informed that the Ministry of Finance has established cooperation with the UNTL to enhance capacity of the ministry staff in the areas of economy, finance and accounting.

Brazilian delegation proposed to specifically focusing the training on the public sector economy to upgrade the level of knowledge of the public sector staff in this specific area.

“With this in mind, will this institution be placed under the Public Service Commission? – asked the VM. Because the TL Government has commenced a Public and Private Partnership (PPP) as part of the Strategic Development Programs”, added VM Hanjam.

To do:

As result of the recommendations from VM and DGCS, the two parts finally agreed:

  • The MOF (DGCS) will carry out internal discussions on the training “needs assessment” with the DGPAR and DGRC relating to the macro economy issues, customs and petroleum issues, to be proposed under this “TL-Brazil bilateral cooperation”.
  • Technical teams of the two countries will solidify the results of the MOF internal needs assessment and elaborate necessary parecer to the COM for scrutiny and decision.

Without anymore issue, the meeting was closed at 10.30 AM.