Timor-Leste

Timor Leste is marked by its struggle for independence, and its political institutions are still dominated by figures linked to the struggle. Colonized by Portugal from the end of the 18th century until 1975, Timor Leste was invaded by Indonesia a week after the country declared independence from Portugal. During the occupation, an insurgency movement fought against the Indonesians, facing brutal repression as documented by the United Nations’ Commission for Reception, Truth and Reconciliation in East Timor. With the reformasi process in Indonesia, the United Nations was requested by the government of Indonesia to organize an independence referendum in August 1999. The overwhelming vote for independence, a signal of the spirit of national unity, was met with violence from pro-Indonesia militias. The violence prompted an Australia-led military intervention under UN auspices to restore peace. A vast majority of the infrastructure of Timor was destroyed during the post-referendum violence. From 1999 until 2002, Timor Leste was under UN administration until the approval of the Constitution and the official declaration of independence on May 20th 2002.

Since the declaration of independence, Timor Leste has successfully organized elections and built a democratic governance structure. Yet, tensions based on how to run the country -which implicitly imply access to powerful governmental positions- have remained between the different political camps, which has created certain instability and tensions between the Presidency and the Parliament. In 2006, these tensions resulted in violent clashes in the capital, with the involvement of political figures, that prompted yet another military intervention by Australia. In recent years tensions between the main two parties, FRETILIN (Frente Revolucionária de Timor-Leste Independente) and CNRT (Congresso Nacional de Reconstrução de Timor), both of which are still dominated by politicians from the independence struggle, have plunged the country into political deadlock. At the heart of this deadlock lays the management of the transformation of dwindling oil dividends into development and the still pending economic transformation of the country.

In the coming years, Timor Leste will face further decreases in their oil reserves without clarity on how to sustainably develop the economy of the country. At the same time, the independence-era political figures will inevitably have to open the way for new generations of politicians. The remarkable performance of Timor Leste´s vibrant democracy will be tested by the challenging economic situation and the arrival of new leadership.