It is recognized that sound economic policies are critical to the socio-economic development of a country. This is a complex task. The policies and strategies need to be ‘owned’ by stakeholders, including government and civil society. It is challenging to implement them and to monitor their developmental impact. Such policies and strategies need to be flexible; they must be able to respond to the changing needs of the society and the economy. East Timor needs to build the capacity and skills required to put it on the desirable socio-economic development path.

The papers presented and discussed at the Dili Economic Forum deal with a comprehensive framework of economic policy and strategy options which are relevant to the emergence of a national poverty reduction strategy for East Timor. Such a strategy needs to be designed and owned by the country.

The critical importance of social development goals in underpinning economic policies needs to be emphasized. Such goals are best pursued by integrating and mainstreaming social development concerns into development planning, and into economic growth and other strategic objectives. This is best done by promoting equality of opportunity, security and empowerment; by bringing social concerns into the mainstream of development interventions; and by mitigating the negative social impacts of development policies. Therefore, economic policies and strategies need to be underpinned by adequate social analysis and assessment of the causes of vulnerability. Vulnerability and poverty are closely linked. Well-directed social development efforts are the backbone of sound economic policies and strategies. They will help to promote social responsiveness to, and the sustainability and ownership of, policies, strategies, programs and projects.

The economic forum publication is just one step in the process through which the East Timorese people will prepare and formulate their development policy and strategy – not following the usual top-down approach so often practised in the past, but in a truly participatory manner, through an intensive and long-term dialogue with societal groups and organizations.