Project participants
Odd Terje Sandlund,Team leader, NINA, NO-7485 Trondheim, Norway
Ian Bryceson, NORAGRIC, P.O. Box, 5001, NO-1432 Ås, Norway
Demetrio de Carvalho, Caicoli Street left of Puskesmas Pelabuhan, Dili, Timor Lorosa´e.
Narve Rio, CMI, P.O. Box 6033 Postterminalen, NO-5892 Bergen, Norway
Joana da Silva, 9/10 Lyell Place, Cartwright, NSW-2168, Australia
Maria Isabel Silva, Bemori, Belarmino Lobo Street, Dili, Timor Lorosa´e.

Executive summary

Background
East Timor is emerging as an independent state after five hundred years of colonialism and foreign occupation, when natural resources were exploited for short term profits and management practices included forced transmigration and other unsustainable policies. In addition, the post-referendum troubles in 1999 left the country with seriously damaged infrastructure and very little economic activity. It has been estimated that it will take sustained growth rates for 5-6 years before the pre-crisis income levels in East Timor are regained. In this situation, first priority has been given to reconstruction and establishment of viable political institutions. In a short-term perspective, it is important that the environmental impacts of the reconstruction activities are taken into consideration. In a longer perspective, it is important that East Timor develops environmental policies to ensure sustainable management and utilisation of natural resources. To assist in the latter process, this report outlines the major environmental issues facing East Timor today, and identifies the main priorities that may need to be addressed by the East Timorese authorities, civil society, and supported by the donor community.

The report is based in information gathered during interviews, meetings, and field surveys during two periods of field work (November - December 2000, and January - February 2001), and by reviewing secondary sources. During field work, local communities were met with and interviewed in 12 out of East Timor's 13 districts. Local administration at various levels was met with in 10 districts. In addition to the ground surveying during these visits, a broad overview of vegetation cover and the environmental situation was obtained by overflying 11 districts by helicopter.

East Timor (14,874 km2), or Timor Lorosa'e ("Timor of the rising sun"), includes the eastern end of the island of Timor, the enclave of Oecussi (2500 km2), and the islands of Atauro (144 km2) and Jaco (8 km2). The country has a quite dramatic topography, dominated by the central mountain range of Ramelau. As much as 44% of East Timor's area may have a slope of more than 40%. For the purpose of this analysis, the area of East Timor may be split into six ecosystem types: Marine and Coastal Zone, Arid Lowland Areas (the northern coast), Moist Lowland Areas (the southern coast), Mountainous Areas, Highland Plains, and Urban Areas

The first Portuguese trading post in East Timor was established in 1562. Before that, however, Timor had been within the area known and visited by Chinese traders. The most attractive product from Timor for both Chinese and European trade was sandalwood (Santalum album). Other goods were honey and beeswax. The overexploitation of sandalwood in East Timor brought this species close to extinction by the beginning of the 1900s. The remaining stands were ransacked by the Indonesian occupants during 1975-1999. Other valuable timber species have also been seriously overexploited.

The present population is approx. 800,000 people, including the refugees still in West Timor. East Timor is an ethnically and linguistically complex society. The events after the independence referendum in 1999 caused great changes in population, settlement patterns, agricultural production, and all other economic activities. For example, approximately 70% of all houses and most infrastructure were destroyed, 75% of the entire population was displaced, and many people were killed. These circumstances have a strong bearing on environmental conditions and management issues.

Until the mid-1990s, more than 90% of the population lived in rural areas. This has been changing rapidly over the last few years, and it is believed that approx. 200,000 people now live in the capital Dili. The rural population is mainly subsistence farmers. In spite of the long coastline, there are relatively few fishermen in East Timor. The gross domestic product (GDP) per capita was estimated at USD 304 in 1999. It is assumed that more than 50% of the population live below the poverty line of an income of USD 1 per day. It should be noted, however, that in a rural-dominated, subsistence-oriented economy, poverty may not be properly understood in terms of monetary income per capita.

Based on the information gathered during this project, the following issues appear important in the future development in the environmental sector in East Timor. Although many of the issues indicated by our informants in local communities are not environmental issues in a strict sense (e.g. drinking water, access to markets), most economic or social issues in East Timor are related to environmental management issues.

Institutions
The institutional framework that has to be developed for handling environmental issues in East Timor, has to be closely matched to the existing challenges, cultural and socio-economic preconditions, and priorities of the people. Regardless of the institutional set up for environmental issues in government and administration, there is a need to integrate environmental consideration into all sectors and aspects of national policies. The involvement of district and local authorities and the private sector in environmental work is also essential for creating the necessary ownership to the emerging problems and solutions.

Environmental policies
East Timor will need to develop a national environmental policy, in order to conserve their natural resources and to obtain a pattern of development that secures improved livelihoods for all groups of the population. A national environmental policy should outline the principles that subsequently will form the basis for the national environmental legislation. A policy for sustainable development will need to include integration of environmental considerations into all economic activities, and into the policies of all ministries and departments.

In the rural areas of East Timor, the traditional socio-political structure (clan - aldeia - sucu) is still quite strong, and in many areas traditional rules for management of natural resources ("tara bandu") are still in active use. Traditional knowledge about local biodiversity, as exemplified through the use of e.g. traditional medicine plants, is still very strong in many areas. Policies for sustainable management need to involve local communities, and to enlist the support of these communities in the implementation of policies and enforcement of laws. This also includes respect for traditional knowledge and intellectual property rights. On the other hand, local communities are asking for national legislation to back up their efforts in enforcing responsible practices based on traditional law.

East Timor faces two types of development pressures. One stems from the immediate need for reconstruction. The other from the fact that East Timor is only now being opened up to foreign investment in sectors with great economic potential such as tourism and oil exploration. This gives high priority to development of policies regarding responsible assessment of the environmental impacts of investment projects. At the same time, policies and modern legislation regarding economic sectors such as industry, tourism, agriculture, forestry, and fisheries must integrate environmental considerations.

Legislation
Appropriate legislation is the basis for a democratic society where the rights of citizens are respected. Human rights, gender equity, religious and political freedom, etc., have to be embedded in a country's constitution, which will also form the basis for environmental legislation.

The proximate aim of environmental legislation is to protect the environment and secure sustainable use of natural resources. The ultimate aim of these measures is to secure the livelihood, living conditions, and health of the human population of today, as well as for future generations. It is well known that if the environment is allowed to deteriorate, the poorer segments of the population are the ones to suffer. The rural poor have to cultivate the marginal or degraded lands, and the urban poor end up in the most polluted or derelict urban environments.

Legislation to protect natural habitats contributes to protect important resources for local communities. Functioning natural habitats allow local communities to harvest biomass for food (fish, fruit, berries, etc.), fuelwood, building materials, etc. In East Timor, medicines and other non-timber forest products are also very important benefits from natural habitats. The socio-economic value of this is particularly important in subsistence economies. The knowledge behind this varied use is normally an integrated part of religious and cultural systems and beliefs, and forms part of people's cultural identity. Thus, environmental legislation, and in particular, legislation to protect biological diversity, protects the basis for local socio-cultural systems.

Watershed management
The information we have obtained indicates that deforestation is a serious environmental problem in most parts of East Timor. Deforestation is one central aspect of a wider environmental problem that may be included in the term poor watershed management. Watershed management includes whole watersheds, involving many local communities from the mountains to the coast. In the steep watersheds of East Timor, improved management of the hillsides is crucial in order to reduce the negative environmental impacts on local communities and population groups in the steep upland areas, in the flat lowland rice-growing areas, as well as in urban areas. In short, the success or failure of integrated watershed management may influence the lives of all groups in East Timor.

Problems concerning availability and quality of drinking water are related to watershed management, and this is an issue in most parts of East Timor. Water quality deteriorates during the rainy season, causing diseases and increased child mortality. In Dili, water availability is poor due to the destroyed infrastructure. The problems related to irrigation water are restricted mainly to the arid parts of the country, where availability of water is strictly seasonal.

Maintenance of the natural forest cover, e.g., through establishment of protected areas, and reforestation, is but one aspect of integrated watershed management. Adoption of suitable agroforestry methods may facilitate continued and improved production in hillside areas where agriculture is maintained. Improved agricultural practices for steep terrain should also be adopted. Integrated watershed management must involve the local communities from an early planning stage, and communities must be given responsibility for the implementation of activities. Collaboration among local communities within watersheds is necessary to achieve the goals. Questions related to land tenure will obviously be important in these activities.

Coastal zone management
The coastal zone of East Timor includes unique resources both on land and in the sea. This ecosystem is at present largely unspoilt. If utilised in a non-destructive and well-planned manner, it will provide great possibilities for economic development, while providing necessary products to sustain the coastal population. If not controlled, economic interests relating to the coastal zone, particularly oil exploration and tourism, will constitute significant threats to this unique resource.

Destruction of near-shore marine resources typically impacts the poor segments of the population. Small-scale artisanal fishermen are most dependent on fish resources close to shore. On land, uncontrolled development and unplanned area use most seriously marginalise the poorer segments of the population.

Biodiversity and environmental status
The present knowledge of the environmental situation in East Timor is very scarce. The necessary knowledge about ecosystems, biological diversity, and effects of alien species is almost completely lacking. The institutions and legal structures that are to be developed in order to implement responsible and correct management regimes will lack the necessary basis for this task. Systematic work should be started to improve the level of information about the present situation, to form basis for a National Environmental Strategy and Action Plan. This work should take the form of a relatively long term, low volume programme, adapted to the capacity of East Timorese institutions. It should enlist the collaboration of local communities, district officers of relevant institutions, the University, and other relevant institutions.

Public awareness and education
Awareness raising and environmental education is essential for any environmental policy. Raising the general public awareness about environmental issues may consist of three main aspects: information to the general public, development of environmental programmes for primary and secondary school curricula, and inclusion of relevant environmental concerns in programmes of higher education.

Solid waste and pollution
Solid waste is restricted to the urban centres, particularly Dili. Solid waste was also obvious in various coastal areas (beaches) visited by tourists. In rural inland areas, this is not a significant problem at present. Pollution of soil and water is also mainly restricted to the towns. However, increased use of agrochemicals in irrigated rice production may change this situation in the near future. Highest priority in this field should be given to the solid waste problem in Dili.

The information collected during this project, as presented in this report, formed the basis for a selected number of project proposals for consideration by UNTAET/ETTA, UNDP and the donor community.