This first systematic country diagnostic(SCD) for Timor-Leste identifies key priorities tosustainably achieve the World Bank Group (WBG) twin goals oferadicating extreme poverty and boosting shared prosperityin Timor-Leste. The Timor-Leste SCD presents a key set ofpriorities towards achieving the twin goals along threepathways: i) continuing to invest in human capital andimproved service delivery; ii) sustained economic growth andprivate sector job creation; and iii) sustainable managementof both the natural environment and public finances. The WBGwill use the SCD as an input towards the preparation of itsCountry partnership framework (CPF) for Timor-Leste, whichwill aim to bring to bear the full resources of the WBG tosupport key development objectives in Timor-Leste.