Published December 15, 2011 By Kristen Blandford Country Profile CCPPR11TL Report available in PDF and Flash formats

Timor-Leste, one of the world’s youngest nations, remains extremely fragile. Economic pressures currently present a challenge to the country’s stability, as high rates of unemployment and oil dependence indicate that current growth is likely to be unsustainable. Timor-Leste relies heavily on international assistance, especially to feed its population, and is unlikely to become self-reliant in the near future. A key area for economic improvement is building domestic production facilities in order to generate more jobs. Diversification of the economy will also be important, as profits from Timor-Leste’s oil industry will not be able to solve the country’s problems. While political tensions have improved in the past year, polarization could quickly reverse progress made thus far. Focus on strengthening institutions and the rule of law will continue to be sorely needed.

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