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From Independence to Turmoil

In: The Creation of the East Timorese Economy

Author

Listed:
  • Mats Lundahl

    (Stockholm School of Economics)

  • Fredrik Sjöholm

    (Lund University)

Abstract

This chapter looks at the early years of independence, leading up to the serious political turbulence of 2006. After independence, the difficult task of building an entirely new administrative apparatus had to be undertaken. The government’s development ambitions were high and corresponded to the popular expectance of improvements in the living standard. The on-the-ground reality turned out to be different, however. In 2006, the economic and social situation of East Timor did not differ visibly from the one prevailing in 2002. The economic growth of the non-oil economy had been highly variable, with negative rates during some years and modest growth during others, which, however, had to be seen in relation to one of the highest rates of population growth in the world. The poor economic development and stagnating living standards led to protests, violence, and political turmoil.

Suggested Citation

  • Mats Lundahl & Fredrik Sjöholm, 2019. "From Independence to Turmoil," Palgrave Studies in Economic History, in: The Creation of the East Timorese Economy, chapter 2, pages 35-75, Palgrave Macmillan.
    • Handle: RePEc:pal:palscp:978-3-030-22052-5_2
    DOI: 10.1007/978-3-030-22052-5_2
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