Timor-Leste

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. Imperial Japan occupied Portuguese Timor from 1942 to 1945, but Portugal resumed colonial authority after the Japanese defeat in World War II. 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 Timor Timur (East Timor). An unsuccessful 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, an overwhelming majority of the people of Timor-Leste voted for independence from Indonesia. Between the referendum and the arrival of a multinational peacekeeping force in late September 1999, anti-independence Timorese militias - organized and supported by the Indonesian military - commenced a large-scale, scorched-earth campaign of retribution. The militias killed approximately 1,400 Timorese and forcibly pushed 300,000 people into western Timor as refugees. The majority of the country's infrastructure, including homes, irrigation systems, water supply systems, and schools, and nearly 100% of the country's electrical grid were destroyed. On 20 September 1999, the Australian-led peacekeeping troops of the International Force for East Timor (INTERFET) deployed to the country and brought the violence to an end. On 20 May 2002, Timor-Leste was internationally recognized as an independent state. In late April 2006, internal tensions threatened the new nation's security when a military strike led to violence and a near breakdown of law and order. At Dili's request, an Australian-led International Stabilization Force (ISF) deployed to Timor-Leste in late May. In August, the UN Security Council established the UN Integrated Mission in Timor-Leste (UNMIT), which included an authorized police presence of over 1,600 personnel. The ISF and UNMIT restored stability, allowing for presidential and parliamentary elections in April and June 2007 in a largely peaceful atmosphere. In February 2008, a rebel group staged an unsuccessful attack against the president and prime minister. The ringleader was killed in the attack and the majority of the rebels surrendered in April 2008. Since the unsuccessful attacks the government has enjoyed one of its longest periods of post-independence stability.

Economical characteristics

 * Currency: U.S. Dollar (ISO code: USD)
 * Central bank discount rate:
 * Commercial banks lending rate: 13.11% (31 December 2008)
 * Stock of money (M1): $102.8 million (31 December 2008)
 * Quasi money (with M1 makes M2): $89.88 million (31 December 2008)

Links

 * Timor-Leste on Wikipedia
 * Central bank of Timor-Leste
 * Country profile (pdf) from the Enterprise Studies page (part of the The World Bank Group)