Dili, Feb. 7, 2025 (Lusa) - The suspension of US aid to Timor-Leste "will not have a tremendous impact" on programmes, according to the president of Futuros Alternativos - Institute of Politics and International Affairs, Fidélis Magalhães, a former government minister.
"In terms of the total volume [of the suspension of aid] and its full impact, it's not yet clear," said Fidélis Magalhães, a doctoral candidate at the University of Oxford. "We have to look at it in more detail, but I don't imagine there will be a huge impact."
Magalhães, who is also part of the Timor Avante Movement (Motiva), created to strengthen thinking and concerns about the fate of the state and the country, backed up his assertion by noting that the country is "largely dependent on its Petroleum Fund," which, in September 2024, contained more than $18 billion.
"In that sense, Timor-Leste has a margin that other countries don't have," he said.
In the first days of his second term, US President Donald Trump has suspended the US Agency for International Development (USAID) for 90 days, while maintaining humanitarian food programmes and military aid to Israel and Egypt.
Secretary of State Marco Rubio will be the new acting director of USAID, which he accused of being "completely lacking in responsiveness" - criticising what he said was "insubordination" at the agency.
In 2023, Timor-Leste received $43.688 million (€42.08 million) from USAID.
On the other hand, Magalhães pointed out, "there will be problems or challenges mainly related to Timorese" and people of other nationalities who work for Timor's own "cooperation agency or for national organisations hired by or doing work for USAID."
But, he said, the situation has yet to stabilise and the 90 days of suspension need to pass in order to understand which programmes will continue.
"My concern at the moment has to do with the Millennium Challenge Corporation project, which has a significant amount of money and which aims to improve concrete conditions" in Timor, he said.
The Millennium Challenge Corporation project was signed between the governments of the US and Timor in July 2022 and provides for a package of $420 million with the aim of promoting economic growth by increasing access to drinking water in Dili and the surrounding areas and improving results in the education sector by training teachers.
"It's a project that has made the United States the largest donor in Timo-Leste," said Magalhães. "I wouldn't like to see that project end. I have no way of confirming that it won't be affected by Donald Trump's decision."
MSE/ARO // ARO.
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