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East Timor: Political Dynamics, Development, and International Involvement

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East Timor: Political Dynamics, Development, and International Involvement East Timor: Political Dynamics, Development, and International Involvement Rhoda Margesson Specialist in International Humanitarian Policy Bruce Vaughn Specialist in Asian Affairs June 17, 2009 Congressional Research Service 7-5700 www.crs.gov RL33994 CRS Report for Congress Prepared for Members and Committees of Congress East Timor: Political Dynamics, Development, and International Involvement Summary The situation in the Democratic Republic of Timor-Leste, which is also known as simply Timor- Leste or East Timor, is relatively calm compared with recent periods of political strife and insurrection. That said, some underlying tensions, such as with the security sector, remain to be resolved. Timor-Leste faces many serious challenges as it seeks to establish a stable democracy and develop its economy. Prior to 2006 the international community’s main concern focused on possible tensions in East Timor’s relations with Indonesia. Since 2006 the main threat to East Timor has been internal strife resulting from weak, or collapsed, state institutions, rivalries among elites and between security forces, a poor economy, unemployment, east-west tensions within the country and population displacement. The reintroduction of peacekeeping troops and a United Nations mission, the flow of revenue from hydrocarbon resources in the Timor Sea, and improved political stability are helping East Timor move towards more effective and democratic government. East Timor has significant energy resources beneath the Timor Sea. A key issue is how this wealth will be conserved and spent in the years ahead. With the assistance of a transitional United Nations administration, East Timor emerged in 2002 as an independent state after a long history of Portuguese colonialism and, more recently, Indonesian rule. This followed a U.N.-organized 1999 referendum in which the East Timorese overwhelmingly voted for independence and after which Indonesian-backed pro-integrationist militias went on a rampage, destroying much of East Timor’s infrastructure and killing an estimated 1,300. Under several different mandates, the United Nations has provided peacekeeping, humanitarian and reconstruction assistance, and capacity building to establish a functioning government. On February 26, 2009, the U.N. Security council extended the mandate of U.N. Integrated Mission in Timor-Leste (UNMIT) for another year. Many challenges remain, including the need for economic development and sustained support by the international community. Although the last of the Internally Displaced Persons (IDP) camps is being closed, IDPs face a number of issues, the resolution of which will be important to sustaining their return, including the need for basic assistance and services, the settlement of land disputes, and the reintegration in their original communities. Congressional concerns have focused on security and the role of the United Nations, human rights, and East Timor’s boundary disputes with Australia and Indonesia. A key challenge for East Timor will be to create enough political stability to focus on building state capacity and infrastructure with resources from the Timor Sea and prevent them from being squandered by corrupt practices. Congressional Research Service East Timor: Political Dynamics, Development, and International Involvement Contents Recent Developments: 2008-2009...............................................................................................6 Background ................................................................................................................................7 Political Dynamics......................................................................................................................8 Leadership ............................................................................................................................8 Jose Ramos-Horta...........................................................................................................8 Xanana Gusmao..............................................................................................................8 Mari Alkatiri...................................................................................................................8 Structure of Parliament..........................................................................................................8 Elections...............................................................................................................................9 Internal Strife and Political Turmoil, 2006-2007........................................................................10 Population Displacement and Humanitarian Issues, 2006-2009 .................................................12 Background ........................................................................................................................12 Recent Developments..........................................................................................................13 United Nations Integrated Mission in Timor-Leste (UNMIT).....................................................13 The Mandate.......................................................................................................................13 Reports by the Secretary General: Then and Now................................................................14 U.N. Peace Operations, 1999-2005......................................................................................15 United Nations Office in Timor-Leste (UNOTIL)................................................................15 The United States and Timor-Leste............................................................................................16 U.S. Assistance to East Timor..............................................................................................16 U.S. Humanitarian Response...............................................................................................17 Potential Issues for Congress...............................................................................................18 Proposed Legislation.....................................................................................................18 Other External Relations ...........................................................................................................18 Australia and New Zealand .................................................................................................18 Portugal ..............................................................................................................................19 Indonesia ............................................................................................................................19 China ..................................................................................................................................20 ASEAN ..............................................................................................................................21 Key Issues ................................................................................................................................21 Economics and Development ..............................................................................................21 Energy Resources..........................................................................................................21 Reconstruction, Poverty Reduction, and Development...................................................22 Human Rights.....................................................................................................................22 The Debate Over Timing the Withdrawal of a U.N. Presence...............................................23 Chronology...............................................................................................................................24 Figures Figure 1. Map of Timor-Leste ...................................................................................................25 Congressional Research Service East Timor: Political Dynamics, Development, and International Involvement Tables Table 1. June 30, 2007 Parliamentary Election Results ................................................................9 Table 2. U.S. Assistance to East Timor, FY2008-FY2010 ..........................................................17 Contacts Author Contact Information ......................................................................................................26 Congressional Research Service East Timor: Political Dynamics, Development, and International Involvement n May 20, 2002, the Democratic Republic of East Timor (Timor-Leste) gained its independence, and on September 27, it became the 191st member of the United Nations. O With the help of the United Nations transitional administration, East Timor’s independence marked the end of three centuries of Portuguese rule and 24 years of Indonesian control.1 Timor-Leste has many challenges to overcome to consolidate its democracy and develop its economy. Recent Developments: 2008-2009 Many observers feel that United Nations security forces left Timor-Leste prematurely in 2005 and that this allowed political violence to paralyze the country in 2006. President Jose Ramos-Horta called for the United Nations to remain in the country for five years in May 2008 citing ongoing concerns over the security situation and the potential for instability to return to the country.2 Many of the civilians displaced by civil disturbances and strife
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