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 Timor-Leste (2008)Timor-Leste (2007)
 Timor-LesteTimor-Leste
Background The Portuguese began to trade with the island of Timor in the early 16th century and colonized it in mid-century. Skirmishing with the Dutch in the region eventually resulted in an 1859 treaty in which Portugal ceded the western portion of the island. Imperial Japan occupied Portugese Timor from 1942 to 1945, but Portugal resumed colonial authority after the Japanese defeat in World War II. East Timor declared itself independent from Portugal on 28 November 1975 and was invaded and occupied by Indonesian forces nine days later. It was incorporated into Indonesia in July 1976 as the province of Timor Timur (East Timor). An unsuccessful campaign of pacification followed over the next two decades, during which an estimated 100,000 to 250,000 individuals lost their lives. On 30 August 1999, in a UN-supervised popular referendum, an overwhelming majority of the people of Timor-Leste voted for independence from Indonesia. Between the referendum and the arrival of a multinational peacekeeping force in late September 1999, anti-independence Timorese militias - organized and supported by the Indonesian military - commenced a large-scale, scorched-earth campaign of retribution. The militias killed approximately 1,400 Timorese and forcibly pushed 300,000 people into western Timor as refugees. The majority of the country's infrastructure, including homes, irrigation systems, water supply systems, and schools, and nearly 100% of the country's electrical grid were destroyed. On 20 September 1999 the Australian-led peacekeeping troops of the International Force for East Timor (INTERFET) deployed to the country and brought the violence to an end. On 20 May 2002, Timor-Leste was internationally recognized as an independent state. In late April 2006, internal tensions threatened the new nation's security when a military strike led to violence and a near breakdown of law and order in Dili. At the request of the Government of Timor-Leste, an Australian-led International Stabilization Force (ISF) deployed to Timor-Leste in late May. In August, the UN Security Council established the UN Integrated Mission in Timor-Leste (UNMIT), which included an authorized police presence of over 1,600 personnel. In subsequent months, many of the ISF soldiers were replaced by UN police officers; approximately 80 ISF officers remained as of January 2008. From April to June 2007, the Government of Timor-Leste held presidential and parliamentary elections in a largely peaceful atmosphere with the support and assistance of UNMIT and international donors. The Portuguese began to trade with the island of Timor in the early 16th century and colonized it in mid-century. Skirmishing with the Dutch in the region eventually resulted in an 1859 treaty in which Portugal ceded the western portion of the island. Imperial Japan occupied Timor-Leste from 1942 to 1945, but Portugal resumed colonial authority after the Japanese defeat in World War II. Timor-Leste declared itself independent from Portugal on 28 November 1975 and was invaded and occupied by Indonesian forces nine days later. It was incorporated into Indonesia in July 1976 as the province of Timor-Leste. An unsuccessful campaign of pacification followed over the next two decades, during which an estimated 100,000 to 250,000 individuals lost their lives. On 30 August 1999, in a UN-supervised popular referendum, an overwhelming majority of the people of Timor-Leste voted for independence from Indonesia. Between the referendum and the arrival of a multinational peacekeeping force in late September 1999, anti-independence Timorese militias - organized and supported by the Indonesian military - commenced a large-scale, scorched-earth campaign of retribution. The militias killed approximately 1,400 Timorese and forcibly pushed 300,000 people into western Timor as refugees. The majority of the country's infrastructure, including homes, irrigation systems, water supply systems, and schools, and nearly 100% of the country's electrical grid were destroyed. On 20 September 1999 the Australian-led peacekeeping troops of the International Force for East Timor (INTERFET) deployed to the country and brought the violence to an end. On 20 May 2002, Timor-Leste was internationally recognized as an independent state. In March of 2006, a military strike led to violence and a near breakdown of law and order. Over 2,000 Australian, New Zealand, and Portuguese police and peacekeepers deployed to Timor-Leste in late May. Although many of the peacekeepers were replaced by UN police officers, 850 Australian soldiers remained as of 1 January 2007.
Budget revenues: $733 million


expenditures: $309 million


note: the government passed a transitional budget to cover the latter half of 2007 and has moved the fiscal cycle to a calendar year, starting with the budget they passed for 2008 (FY06/07 est.)
revenues: $107.7 million


expenditures: $73 million (2004 est.)
Country name conventional long form: Democratic Republic of Timor-Leste


conventional short form: Timor-Leste


local long form: Republika Demokratika Timor Lorosa'e [Tetum]; Republica Democratica de Timor-Leste [Portuguese]


local short form: Timor Lorosa'e [Tetum]; Timor-Leste [Portuguese]


former: East Timor, Portuguese Timor
conventional long form: Democratic Republic of Timor-Leste


conventional short form: Timor-Leste


local long form: Republika Demokratika Timor Lorosa'e [Tetum]; Republica Democratica de Timor-Leste [Portuguese]


local short form: Timor Lorosa'e [Tetum]; Timor-Leste [Portuguese]


former: East Timor; Portuguese Timor
Economy - overview In late 1999, about 70% of the economic infrastructure of Timor-Leste was laid waste by Indonesian troops and anti-independence militias. Three hundred thousand people fled westward. Over the next three years a massive international program, manned by 5,000 peacekeepers (8,000 at peak) and 1,300 police officers, led to substantial reconstruction in both urban and rural areas. By the end of 2005, refugees had returned or had settled in Indonesia. The country continues to face great challenges in rebuilding its infrastructure, strengthening the civil administration, and generating jobs for young people entering the work force. The development of oil and gas resources in offshore waters has begun to supplement government revenues ahead of schedule and above expectations - the result of high petroleum prices. The technology-intensive industry, however, has done little to create jobs for the unemployed because there are no production facilities in Timor. Gas is piped to Australia. In June 2005 the National Parliament unanimously approved the creation of a Petroleum Fund to serve as a repository for all petroleum revenues and preserve the value of Timor-Leste's petroleum wealth for future generations. The Fund held assets of US$1.8 billion as of September 2007. The mid-2006 outbreak of violence and civil unrest disrupted both private and public sector economic activity and created 100,000 internally displaced persons - about 10 percent of the population. While real non-oil GDP growth in 2006 was negative, the economy probably rebounded in 2007. The underlying economic policy challenge the country faces remains how best to use oil-and-gas wealth to lift the non-oil economy onto a higher growth path and reduce poverty. In late 2007, the new government announced plans aimed at increasing spending, reducing poverty, and improving the country's infrastructure, but it continues to face capacity constraints. In the short term, the government must also address continuing problems related to the crisis of 2006, especially the displaced Timorese. In late 1999, about 70% of the economic infrastructure of Timor-Leste was laid waste by Indonesian troops and anti-independence militias, and 300,000 people fled westward. Over the next three years, however, a massive international program, manned by 5,000 peacekeepers (8,000 at peak) and 1,300 police officers, led to substantial reconstruction in both urban and rural areas. By the end of 2005, all refugees either returned or resettled in Indonesia. The country faces great challenges in continuing the rebuilding of infrastructure, strengthening the infant civil administration, and generating jobs for young people entering the work force. The development of oil and gas resources in nearby waters has begun to supplement government revenues ahead of schedule and above expectations - the result of high petroleum prices - but the technology-intensive industry does little to create jobs for the unemployed, because there are no production facilities in Timor and the gas is piped to Australia. The parliament in June 2005 unanimously approved the creation of a Petroleum Fund to serve as a repository for all petroleum revenues and preserve the value of Timor-Leste's petroleum wealth for future generations. The mid-2006 outbreak of violence and civil unrest disrupted both private and public sector economic activity. Real non-oil GDP growth in 2006 is estimated to have been negative. The underlying economic policy challenge the country faces remains how best to use oil-and-gas wealth to lift the non-oil economy onto a higher growth path and reduce poverty.
Electricity - production NA kWh (2005) NA kWh
Executive branch chief of state: President Jose RAMOS-HORTA (since 20 May 2007); note - the president plays a largely symbolic role but is able to veto legislation, dissolve parliament, and call national elections


head of government: Prime Minister Kay Rala Xanana GUSMAO (since 8 August 2007), note - he formerly used the name Jose Alexandre GUSMAO; Deputy Prime Minister Jose Luis GUTERRES (since 8 August 2007)


cabinet: Council of Ministers


elections: president elected by popular vote for a five-year term (eligible for a second term); election last held on 9 April 2007 with run-off on 8 May 2007 (next to be held in May 2012); following elections, president appoints leader of majority party or majority coalition as prime minister


election results: Jose RAMOS-HORTA elected president; percent of vote - Jose RAMOS-HORTA 69.2%, Francisco GUTTERES 30.8%
chief of state: President Jose RAMOS-HORTA (since 20 May 2007); note - the president plays a largely symbolic role but is able to veto legislation, dissolve parliament, and call national elections


head of government: Prime Minister Kay Rala Xanana GUSMAO (since 8 August 2007), note - he formerly used the name Jose Alexandre GUSMAO; Deputy Prime Minister Jose Luis GUTERRES (since 8 August 2007)


cabinet: Council of Ministers


elections: president elected by popular vote for a five-year term (eligible for a second term); election last held on 9 April 2007 with run-off on 8 May 2007 (next be be held in May 2012); following elections, president appoints leader of majority party or majority coalition as prime minister


election results: Jose RAMOS-HORTA elected president; percent of vote - Jose RAMOS-HORTA 69.2%, Francisco GUTTERES 30.8%
Exports 0 cu m (2005 est.) $10 million; note - excludes oil (2005 est.)
Exports - partners US, Germany, Portugal, Australia, Indonesia (2006) Indonesia 100% (2006)
Fiscal year calendar year 1 July - 30 June
GDP - composition by sector agriculture: 32.2%


industry: 12.8%


services: 55% (2005)
agriculture: 8.5%


industry: 23.1%


services: 68.4% (2004)
GDP - real growth rate 24% (2007 est.) 1.8% (2005 est.)
Imports 0 cu m (2005) $202 million (2004 est.)
Inflation rate (consumer prices) 5.4% (2007 est.) 1.4% (2005)
International organization participation ACP, ADB, ARF, CPLP, FAO, G-77, IBRD, ICAO, ICCt, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, MIGA, NAM, OPCW, PIF (observer), UN, UNCTAD, UNESCO, UNIDO, Union Latina, UNWTO, UPU, WCO, WHO ACP, ARF, AsDB, CPLP, FAO, G-77, IBRD, ICAO, ICCt, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, MIGA, NAM, OPCW, PIF (observer), UN, UNCTAD, UNESCO, UNIDO, Union Latina, UNWTO, UPU, WCO, WHO
Legal system UN-drafted legal system based on Indonesian law remains in place but is to be replaced by civil and penal codes based on Portuguese law; these have passed but have not been promulgated; has not accepted compulsory ICJ jurisdiction UN-drafted legal system based on Indonesian law remains in place but are to be replaced by civil and penal codes based on Portuguese law; these have passed but have not been promulgated; has not accepted compulsury ICJ jurisdiction
Legislative branch unicameral National Parliament (number of seats can vary from 52 to 65; members elected by popular vote to serve five-year terms)


elections: last held on 30 June 2007 (next elections due by June 2012)


election results: percent of vote by party - FRETILIN 29%, CNRT 24.1%, ASDT-PSD 15.8%, PD 11.3%, PUN 4.5%, KOTA-PPT (Democratic Alliance) 3.2%, UNTERDIM 3.2%, others 8.9%; seats by party - FRETILIN 21, CNRT 18, ASDT-PSD 11, PD 8, PUN 3, KOTA-PPT 2, UNDERTIM 2
unicameral National Parliament (number of seats can vary from 52 to 65; members elected by popular vote to serve five-year terms)


elections: last held on 30 June 2007 (next elections to be held in June 2012)


election results: percent of vote by party - FRETILIN 29%, CNRT 24.1%, ASDT-PSD 15.8%, PD 11.3%, PUN 4.5%, KOTA-PPT (Democratic Alliance) 3.2%, UNTERDIM 3.2%, others 8.9%; seats by party - FRETILIN 21, CNRT 18, ASDT-PSD 11, PD 8, PUN 3, KOTA-PPT 2, UNDERTIM 2
Military branches Timor-Leste Defense Force (Forcas de Defesa de Timor-L'este, Falintil (FDTL)): Army, Navy (Armada) (2008) Timor-Leste Defense Force (Forcas de Defesa de Timor-L'este, FDTL): Army, Navy (Armada) (2005)
Political parties and leaders Democratic Party or PD [Fernando de ARAUJO]; National Congress for Timorese Reconstruction or CNRT [Xanana GUSMAO]; National Democratic Union of Timorese Resistance or UNDERTIM [Cornelio DA Conceicao GAMA]; National Unity Party or PUN [Fernanda BORGES]; People's Party of Timor or PPT [Jacob XAVIER]; Revolutionary Front of Independent Timor-Leste or FRETILIN [Mari ALKATIRI]; Social Democratic Association of Timor or ASDT [Francisco Xavier do AMARAL]; Social Democratic Party or PSD [Mario CARRASCALAO]; Sons of the Mountain Warriors or KOTA [Manuel TILMAN] (also known as Association of Timorese Heroes) Democratic Party or PD [Fernando de ARAUJO]; National Congress for Timorese Reconstruction or CNRT [Xanana GUSMAO]; National Democratic Union of Timorese Resistance or UNDERTIM [Cornelio DA Conceicao GAMA]; National Unity Party or PUN [Fernanda BORGES]; People's Party of Timor or PPT [Jacob XAVIER]; Revolutionary Front of Independent Timor-Leste or FRETILIN [Francisco Guterres Lu OLO]; Social Democratic Association of Timor or ASDT [Francisco Xavier do AMARAL]; Social Democratic Party or PSD [Mario CARRASCALAO]; Sons of the Mountain Warriors or KOTA [Clementino dos Reis AMARAL] (also known as Association of Timorese Heroes)
Radio broadcast stations at least 21 (Timor-Leste has one national public broadcaster and 20 community and church radio stations - frequency type NA) at least 1 (Timor-Leste has a state-run media oversight authority that oversees at least 1 radio station - frequency type NA)
Telephone system general assessment: rudimentary service limited to urban areas


domestic: system suffered significant damage during the violence associated with independence; extremely limited fixed-line services; mobile-cellular services and coverage limited primarily to urban areas


international: country code - 670; international service is available in major urban centers
general assessment: rudimentary service limited to urban areas


domestic: fixed and wireless service available; system suffered significant damage during the violence associated with independence


international: country code - 670; international service is available in major urban centers
Television broadcast stations 1 (Timor-Leste has one national public broadcaster) 1 (Timor-Leste has a state-run media oversight authority that oversees at least 1 television station)
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