The decentralization policy was formulated by the Minister of State Administration with the help of other government agencies. A year after independence in 2002, the government planned to implement decentralization in order to establish a strong, democratic, and efficient local-based government. The policy states that “[t]he law proposal shall include provision and criteria for the establishment of new municipalities in the future” (2) . These multiple jurisdictions are characterized with numerous objectives. According to the policy orientation guidelines presented by the Ministry of State Administration, the policy “[p]romotes the institutions of a strong, legitimate, and ...
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...h municipalities. A simultaneous establishment of municipalities across the country requires more and more tangible materials to build them. This means that national budget that needs to be allocated for resources and materials in building constructions and setting up administration will be a vast amount.
The decentralization policy that was proposed by Timor-Leste’s Ministry of State Administration transforms political structure from centralized to decentralized authority, it impacts social life through equal distribution of public goods and service across the nations. To some extent, it deals with the economic issues though local government subsidies to fund sustainable agriculture. However, despite the benefits of implementation of the decentralization policy, there are challenges that yet to be faced when it comes to the initial implementation.
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