[{"bbox": [85, 153, 323, 186], "category": "Section-header", "text": "## 2 RATIONALE"}, {"bbox": [174, 219, 322, 247], "category": "Section-header", "text": "### 2.1 Context"}, {"bbox": [96, 265, 1163, 346], "category": "Text", "text": "This action is integrated in the objective of Priority area 1 of the Multi-annual Indicative Plan: promote green and sustainable economic diversification in Timor-Leste through private sector development, technical and vocational education training (TVET) for youth integration in the labour market."}, {"bbox": [96, 357, 1163, 570], "category": "Text", "text": "One of the priorities of the Government in Timor-Leste is to diversify the economy and to do that it is necessary to give special focus on private sector development. This involves enhancing the small and medium enterprises sector, while also removing some of the binding constraints to private sector growth and improving infrastructure, increasing efficiency in the public sector, facilitating credit, and, in particular, building up skilled labour. The action provides a direct response to the growth priorities of Timor-Leste by supporting private sector development, job creation for youth and women and diversification of the economy. As Agriculture and Forestry are the biggest sources of economic activity for most of the Timorese population, and considering the previous support of the European Union in the country, this action will be focused on Agroforestry value chain."}, {"bbox": [96, 581, 1163, 768], "category": "Text", "text": "Timor-Leste has faced multidimensional challenges on land use management, including deforestation, land degradation and poverty. The Agroforestry system is recognised as one of the viable options for balancing the socio-economic needs and ecological functions of the lands in Timor-Leste. The system has been practiced traditionally by farmers in the country; however, the lack of enough/updated knowledge and experience, limited institutional capacity, lack of funding and financial access, infrastructures, irrigation facilities, vulnerability to climatic hazards and unclear land ownership rights have created a challenge for the wide acceptance and implantation of agroforestry system in the country."}, {"bbox": [96, 780, 1163, 914], "category": "Text", "text": "To address the lack of knowledge and experience and limited institutional capacity in agro-forestry and in green business creation and development, this action will identify sustainable paths and businesses in the agroforestry value chain, and consequently, will create new job profiles with a focus on green and circular economy. This will contribute for the improvement of the capacities and competences of youth and women for the creation and development of sustainable and green businesses that can contribute to the reduction of climate change impacts in Timor-Leste."}, {"bbox": [96, 924, 1163, 1003], "category": "Text", "text": "In this sense, the action will support a green transformation of the economy, contributing for the implementation of Timor-Leste the economic recovery plan, after COVID-19, making it more diversified, greener, inclusive and human centred."}, {"bbox": [96, 1015, 1163, 1205], "category": "Text", "text": "The action is in line with the Strategic Development Plan 2011-203¹ and with the Government Post-COVID-19 Economic Recovery Plan² that provide appropriate policy and political framework for the partnership between Timor-Leste and the European Union. These priorities are also framed by the EU Strategy for cooperation in Indo-Pacific of 16 September 2021, that intends to work with Indo-Pacific partners to build more resilient and sustainable global value chains by diversifying trade and economic relations, and by developing technological standards and regulations that are in line with our values and principles. This action will tackle three of the seven priorities: sustainable and inclusive prosperity; green transition and digital governance and partnerships."}, {"bbox": [96, 1215, 1163, 1402], "category": "Text", "text": "The EU Global Gateway Strategy of 1 December 2021 and the Regional Team Europe Initiative on Green-Blue Alliance between the EU and the Pacific are also embedded in this initiative. Flagship initiative for the Global Gateway, the Green-Blue Alliance includes key actions on sustainable management of natural capital aiming at developing a stewardship model that reconciles biodiversity, environmental protection and restoration, with sustainable development that favours economic growth and job creation, population well-being. This action will have a positive impact in sustainable development due to the focus on agriculture and forestry and on the skills development for a better integration of youth and women in the labour market."}, {"bbox": [96, 1413, 1163, 1547], "category": "Text", "text": "In Timor-Leste there is high youth unemployment with very low levels of vocational skills and very deficient basic education. This situation is worse for women. Timor-Leste has one of the youngest populations in the world, with nearly 62% below the age of 25. While being an opportunity and an asset if it is invested in strategically, the young population increasingly exerts pressure on the economy as well as on social services and therefore, on peace and stability. In Dili, opportunities for higher education attract young people from the poorer rural areas, resulting in"}, {"bbox": [85, 1597, 909, 1623], "category": "Footnote", "text": "¹ http://timor-leste.gov.tl/wp-content/uploads/2011/07/Timor-Leste-Strategic-Plan-2011-20301.pdf"}, {"bbox": [85, 1621, 709, 1646], "category": "Footnote", "text": "² http://timor-leste.gov.tl/wp-content/uploads/2020/10/EN-PRE-screen.pdf"}, {"bbox": [1038, 1681, 1144, 1706], "category": "Page-footer", "text": "Page 4 of 24"}]