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Briefing Book for the 42nd Parliament

Timor-Leste—the Future of Australia’s Engagement

Timor-Leste (also known as East Timor) has been an ongoing concern to Australia. In recent years there has been a belief that Timor-Leste was facing the possibility of becoming a failing state on Australia’s doorstep.

Australia’s mission in Timor-Leste has been the country’s largest contribution to multilateral peacekeeping in the post-Cold War period. Australia played a leading role in the International Force in East Timor (INTERFET) in 1999–2000. INTERFET was a response to the large-scale violence that erupted after the East Timorese overwhelmingly voted for separation from Indonesia on 30 August 1999.

Australia is currently contributing to two multinational missions in Timor-Leste:

When East Timor formally became independent on 20 May 2002, hopes were high for the world’s youngest democracy. However, political tensions remained between the former prime minister of Timor-Leste and Fretilin secretary-general, Mari Alkatiri, and the former president, Xanana Gusmão.

A contentious issue for the first East Timorese Government was the role of the national army. Timor-Leste experienced violence and civil disorder in April–May 2006 following Alkatiri’s dismissal of 594 members of the 1400-strong army in March 2006. Australian forces were redeployed in Timor-Leste in June 2006 to restore basic law and order after the riots left an estimated 150 000 civilians displaced across the country. In May 2006, then Prime Minister John Howard stated that Australia had a ‘special responsibility’ for the maintenance of regional peace and stability, and a ‘particular obligation’ to Timor-Leste, given Australia’s engagement since the birth of the new nation.

The communal violence adversely affected the country’s economy. Tens of thousands of East Timorese currently live in refugee camps, reportedly too frightened to return home. Economic problems are likely to persist into the future, as much of the growing population is unemployed and approximately 42 per cent of East Timorese continue to live below the poverty line. The non-government sector has also raised concerns about the amount of money generated from the revenues under the Greater Sunrise Treaty (signed with Australia in 2003), which has been re-invested in the country’s development projects. The sustained presence of East Timorese refugees and ex-militias in West Timor continues to be a challenging issue for Timor-Leste’s leaders.

Following the breakdown of civil order in April–May 2006, and the arrival of international troops in June 2006, Alkatiri was forced to resign, and called new elections. In the presidential elections held on 9 May 2007, Dr José Ramos Horta was elected president, winning approximately 69 per cent of the popular vote. Horta later appointed Gusmão as the prime minister, following the deadlock resulting from the parliamentary elections held on 30 June 2007.

The parliamentary elections were the first to be held in Timor-Leste since the country’s independence from Indonesia. They were marked by the contest between the two main political parties, Fretilin (Revolutionary Front for an Independent East Timor) led by Alkatiri, and the National Congress for Timorese Reconstruction (CNRT), led by Gusmão. Although Fretilin won the largest number of votes as an individual party, the CNRT managed to secure a legislative majority with support from several smaller parties. Concerns remain about the political stability in Timor-Leste given the loose coalition of interests that keeps the current government in place.

Australia provided over $570 million in Official Development Assistance to Timor-Leste between 1999 and June 2007. In the 2006–07 Budget, Australia increased its assistance in response to the 2006 unrest and humanitarian crisis. The Howard Government undertook to provide a further $72.8 million to Timor-Leste in 2007–08. Australian assistance comprises projects that target good governance, capacity building, national reconciliation and peace-building, rural development, and health and education. Australia is helping the East Timorese Government to improve justice and regulatory systems and to strengthen national agencies in order to build a better future for the country—one of the poorest in the Asia–Pacific region.

Apart from the continuing maintenance of security, the main challenge for Australian engagement in Timor-Leste is fostering the creation of a resilient institutional structure and sufficient expertise to deal with unresolved issues and future challenges.

Documentation
Australian Agency for International Development (AusAID) East Timor, updated June 2007.
James Cotton, ‘Timor-Leste and the discourse of state failure’, Australian Journal of International Affairs, vol. 61, no. 4, 2007, pp. 455–70.
James Dunn, ‘East Timor in the Arc of Instability’, in Dennis Rumley, Vivian Louis Forbes and Christopher. Griffin (eds), Australia’s Arc of Instability: The Political and Cultural Dynamics of Regional Security, Springer, the Netherlands, 2006, pp. 101–10.