Ramos-Horta, a Nobel Peace Prize laureate, is an affable, accomplished and charismatic diplomat who was handed recently one of the biggest challenges of his life: On July 10 he became this young nation's second prime minister amid high expectations that he can restore political stability, reconstitute the security forces, promote development, eradicate corruption and revive public faith in this fledgling democracy. Although conditions remain bleak, he is widely viewed as the best man for promoting reconciliation and restoring hope. In recent months, at considerable personal risk, he has crisscrossed this island during the height of violence to negotiate with rebel groups, reassure the public, stop looters and stem unrest. In addition to accepting this mission impossible, he put aside personal ambitions by withdrawing his name from a shortlist of candidates expected to succeed U.N. Secretary General Kofi Annan

As the Chief of Government, he is supported by the Minister in the Presidency of the Council of Ministers and by the Secretary of State for Parliamentary Affairs. The following services and bodies are directly under the Prime Minister. He is also responsible for those that are not formally integrated in a Ministry or Secretariat of State such as the Timor Sea Office and the Government Information Office::

• National Service for State Security
• Inspector-General
• Office of the Advisor for Human Rights
• Office of the Advisor for Image and Social Communications
• Office of the Advisor of Promotion of Equality
• Capacity Development Coordination Unit
• The Banking and Payments Authority

The Prime Minister is responsible for the defence and implementation of budget statements and government policy generally. Although he consults widely and must seek the approval from the Council of Ministers, he is ultimately responsible for all government decisions.