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East Timor

Introduction to East Timor

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. 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 East Timor. A 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, the people of East Timor voted for independence from Indonesia. During 1999-2001, anti-independence militias - supported by Indonesia - conducted indiscriminate violence. On 20 May 2002, East Timor was internationally recognized as an independent state.

Government

Capital:

Dili

Independence:

28 November 1975 (date of proclamation of independence from Portugal); note - 20 May 2002 is the official date of international recognition of East Timor's independence from Indonesia

National holiday:

Independence Day, 28 November (1975) 

Economy

Economy overview:

In late 1999, about 70% of the economic infrastructure of East Timor was laid waste by Indonesian troops and anti-independence militias, and 260,000 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 mid-2002, all but about 50,000 of the refugees had returned. Growth was held back in 2003 by extensive drought and the gradual winding down of the international presence. The country faces great challenges in continuing the rebuilding of infrastructure, strengthening the infant civil administration, and generating jobs for young people entering the workforce. One promising long-term project is the planned development of oil and gas resources in nearby waters, but the government faces a substantial financing gap over the next several years before these revenues start flowing into state coffers. 

GDP:

purchasing power parity - $440 million (2001 est.)

GDP - composition by sector:

agriculture: 25.4%
industry: 17.2%
services: 57.4% (2001)

Agriculture products:

coffee, rice, maize, cassava, sweet potatoes, soybeans, cabbage, mangoes, bananas, vanilla

Industries:

printing, soap manufacturing, handicrafts, woven cloth

Transportation

Highways:

total: 3,800 km
paved: 428 km
unpaved: 3,372 km (1995)

Airports:

8 (2003 est.)

 

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