The Democratic Republic of Timor-Lesteis a young, post-conflict nation endowed with significantoil revenues. Timor-Leste has one of the highest birth ratesin the world (2.41 percent population growth) with over 44percent of the population below 15 years of age (Timor-LesteCensus, 2010). Since the 2006 crisis, the Government ofTimor-Leste has shown a clear commitment to socialassistance. Globally, poverty persistence is closely relatedto major life-cycle disadvantages resulting in low humancapital outcomes, and yet large-scale poverty remainsunaddressed by current social protection efforts. Thisexpenditure review and performance evaluation report is partof the technical assistance provided to Timor-Leste'sMinistry of Social Solidarity (MSS) in response to the lackof any national level evaluation of the safety nets systemsince its inception. To that end, this study seeks to assessthe social assistance policy, as well as the performance ofthe main MSS social assistance programs. More specifically,the aims are to: (1) determine whether existing programs areefficient, effective and sufficient in addressing mainvulnerabilities; (2) assess the adequacy and composition ofthe allocation of financial resources for delivery ofgovernment social assistance; (3) review operational andadministrative issues; and (4) make recommendations forimproving the delivery of social safety nets. Some of thequestions that this report seeks to answer include: what arethe main risks facing the vulnerable groups in Timor-Leste?;what types of programs are in place to address those risks?;is the range of programs and their financial allocationsappropriate for the country's needs?; is theinstitutional arrangement adequate?; are these programseffective and reaching the intended beneficiaries?; and arethey implemented cost-effectively? The report is organizedas follows: chapter one gives context, purpose andconceptual framework. Chapter two describes the attributesof the poorest 40 percent and the main vulnerabilities andrisks that low-income families in Timor-Leste face. Chapterthree provides a historical overview of the socialassistance policy and programs that emerged after the2006-2007 conflict. A summary of levels and trends inaggregate public expenditure on safety nets, composition ofspending as well as program-specific budget analysis ispresented in chapter four. Chapter five assesses performanceof the safety nets by analyzing coverage, targetingeffectiveness, and generosity. Chapter six examines impactand targeting efficiency using simulation techniques.Chapter seven assesses implementation capacity, and businessprocesses, and in particular, the following: ID systems,enrollment, payments arrangements and monitoring andevaluation. Chapter eight concludes with implications forsocial response and policy considerations.