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Political, Economic, and Social Developments 2007–18

In: The Creation of the East Timorese Economy

Author

Listed:
  • Mats Lundahl

    (Stockholm School of Economics)

  • Fredrik Sjöholm

    (Lund University)

Abstract

This chapter examines the development from 2007 until the present day. It includes detailed analyses of politics, fiscal policy, and social progress. After 2006, an aggressive spending policy began, on the one hand, via the transfer programs for veterans and internally displaced people, and, on the other hand, through investments in infrastructure as part of the strategic development plan. From 2007 until 2016, public expenditures expanded ten times, with the result that the size of the petroleum fund began to shrink from 2015. The new spending policy boosted economic growth substantially during a couple of years, but, thereafter, the rate declined. As it seems, income per capita has increased and the incidence of poverty has decreased. Also, ownership of consumer durables, education, and health care have developed favorably. However, malnutrition is much worse in East Timor than in comparable countries. Periodic food shortages continue to be a problem.

Suggested Citation

  • Mats Lundahl & Fredrik Sjöholm, 2019. "Political, Economic, and Social Developments 2007–18," Palgrave Studies in Economic History, in: The Creation of the East Timorese Economy, chapter 3, pages 77-135, Palgrave Macmillan.
    • Handle: RePEc:pal:palscp:978-3-030-22052-5_3
    DOI: 10.1007/978-3-030-22052-5_3
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