Current Economic Status and Industrial Characteristics of East Timor

Name : Bendito Freitas RibeiroStudent ID : 14507287Subject :Technology and Public Policy

East Timor / Timor Leste

• Republic Democratic of East Timor (RDTL)• Major religion: Christianity• Major languages: Tetum and Portuguese

(official), Indonesian and English (working languages)

Profile. • Timor-Leste, is located in Southeast Asia.

• The small country of 15,410 km² (5,400 sq. mi) is located about 640 km (400 mi) northwest of Darwin, Australia.

• The total population was 1.8 million people in 2013, population growth rate is 2.5%.

Historical • 1520 - Portuguese invade Timor, set up trading post and use

island as source of sandalwood.• 1749 - Timor split following battle between Portuguese and

Dutch. Portuguese take the eastern half• 1942 - Japanese invade, fighting battles with Australian troops. Up

to 60,000 East Timorese were killed. Japan in control until 1945. • 1974 - Revolution in Portugal leads to promise to free colonies,

encouraging parties to prepare for new future. • Nov 28th 1975 -East Timor declared its independence, but several

days later on Dec 7th 1975 was invaded and occupied by Indonesia.

• In 1999, act of self-determination (78.5% reject the proposed special autonomy for East Timor), and East Timor became the first new sovereign state of the 21st century on May 20, 2002 (Independence Day Restoration)

Economy Overview

• Since 1999 independence, Timor-Leste has faced 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 greatly supplemented government revenues.

• At the mid-2006 outbreak of violence and civil unrest, which disrupted both private and public sector economic activity.

• Government spending increased markedly from 2009 through 2012, primarily on basic infrastructure, including electricity and roads.

• East Timor has a market economy that used to depend upon exports of a few commodities such as coffee, marble, oil, and sandalwood.

• Small Industries: printing, soap manufacturing, handicrafts, woven cloth, etc.

• Timor Leste now has revenue from offshore oil and gas reserves. The Timor-Leste Petroleum Fund was established in 2005, and by 2011 it had reached a worth of US$8.7 billion

• On the strength of its oil-wealth, the economy has achieved real growth between 8-12% per year for the last several years, among the highest sustained growth rates in the world

• After petroleum, the second largest export is coffee, which generates about $10 million a year (Starbucks is a major purchaser)

• East Timor's economy grew by about 10% in 2011 and at a similar rate in 2012

Economy Overview

The Gross Domestic Product (GDP) in East Timor was worth 1.62 billion US dollars in 2013. The GDP value of East Timor represents less than 0.01 percent of the world economy. GDP in East Timor averaged 0.73 USD Billion from 2000 until 2013, reaching an all time high of 1.62 USD Billion in 2013 and a record low of 0.35 USD Billion in 2000. Timor-Leste, GDP growth rate 2014 = 8 %

East Timor GDPbillion

GDP Annual Growth rate

East Timor GDP Last Previous Highest Lowest Unit

GDP 1.62 1.36 1.62 0.35 USD Billion

GDP Annual Growth Rate 8.00 8.20 16.30 -6.70 Percent

GDP per capita 816.17 690.83 816.17 433.65 USD

GDP per capita PPP 2170.50 2058.81 2170.50 1163.62 USD

Unemployment rate

In East Timor, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.

East Timor Labour Last Previous Highest Lowest UnitUnemployment Rate 3.90 6.70 9.89 3.90 Percent

Population 1.18 1.15 1.18 0.50 Million

STRATEGIC DEVELOPMENT PLAN2011 - 2030

• ECONOMIC DEVELOPMENT Timor-Leste will build a modern, diversified economy based on the agriculture, tourism and petroleum industries, with a flourishing private sector and new opportunities for all our people.

TARGETS :By 2015:

• 55,000 new homes will have been built by 2015 to support families across the nation under the Millennium Development Goals Suco Program

• Support will be provided to cooperatives undertaking private sector activity in a variety of areas ranging from managing bamboo plantations to chicken farming, fishing and weaving

• A National Planning Framework will have been prepared to underpin Timor-Leste’s development

• An on-request title service will be provided for farmers willing to pay for the service

• Strategic extension campaigns for agricultural commodities will have been developed and executed

• A pilot program will establish between three to five municipal chambers to work towards the gradual decentralization of the exercise of government.

By 2020 • A program of rural urbanization will be completed, providing our

people with better roads, water and sanitation, schools, medical clinics, access to markets and electricity

• There will be 9,000 businesses registered with Business Development Centers

By 2030 • The private sector will be the primary source of growth in incomes

and employment in rural areas of Timor-Leste.

TARGETS :

Opinion

• Article : Transitioning from Recovery to a New Era of Development, Hirohiko Takata Chief Representative of the JICA Timor Leste Office, July 2nd 2012– Political institutions seem to improving as well.– The government of Timor Leste has not been able to

effectively accept the technological assistance offered by donors, because it has lacked the human resources capacity to make use of it. Consideration needs to be given to provide assistance in a form that the recipient is capable of utilizing.

– There are many challenges that Timor Leste will have to face in the coming years. They still have no industries that can support an actual economy, and developing these industries is a pressing matter.

http://www.jica.go.jp/english/news/opinion/2012/120702_02.html

President RDTLTaur Matan Ruak

Prime Minister Xanana Gusmao

Former President RDTLRamos Horta

Current UN Representative in Guinea Bissau

Thank You for your attention