East Timor — officially the Democratic Republic of Timor-Leste — is a least developed country with a GDP per Capita of around 1400.00 USD and has huge development potentials. According to multiple sources including the BBC and CNN, East Timor, a country with a medium level of human development, has the potential for economic growth through investment in rich natural resources including oil and gas, developing renewable energy aiming to reduce reliance on fossil fuels and expanding tourism industry. Additionally, the country’s strategic location in Southeast Asia offers potential for increased trade and development partnerships with neighboring countries. The country also has social and other development potentials which can improve its living standard further.
But there are economic, social and other development challenges to East Timor, which gained its independence in 2002. There are limited infrastructure, limited credit access, high levels of poverty, a low rate of literacy, inadequate supply of public utilities including access to clean water and sanitation and a lack of skilled workforce. Additionally, the lack of good governance, the presence of government corruption, inadequate rule of law, a lack of sustainable resource management, political challenges and arbitrary killings are crucial challenges to the country’s long-term economic, social and other sorts of development. Political instability immensely hindered the progress of the country’s development efforts in 2020. Among others, dependence on foreign aid and vulnerability to natural disasters are some other development challenges.
Governments have taken legal, policy based and other steps to address development challenges to Timor Leste, which is one of East Asia’s poorest countries. The governments have made and implemented economic and other development policies (including the Timor-Leste Strategic Development Plan which is a twenty-year vision and reflects the aspirations of the Timorese people to create a prosperous country), implemented fiscal reforms with the aim to improve revenue generation, promoted private sector growth through a variety of means including investment incentives and enhanced infrastructure development aiming to attract foreign investment. Among others, the government has also focused on improving access to its utilities, sustainable human capital development and addressing other social problems, along with the political challenges.
But there are flaws in the steps taken, leading to limited outcomes of the efforts. There remains insufficient investment in infrastructure, limited investment in education and inadequate support for small businesses. There is also a lack of transparency in decision-making processes, inadequate implementation of development policies and insufficient consultation with local communities that have led to a lack of trust in the government and hindered the development efforts — needed for improving economic and other conditions. Among others, there is also a lack of coordination between government agencies, limited access to utility services including healthcare services for the population and inadequate steps to address good governance and ensure human rights in Timor Leste.
Planned and strengthened steps are vital to address diverse development barriers in economic, social and other terms in East Timor, a small island state. Strengthening infrastructure, promoting sustainable economic growth through diversification of industries and attracting foreign investment are definitely vital. Strengthening governance and transparency to combat corruption, ensuring the efficient use of resources and investing in human capital through education and skills training programs to enhance workforce productivity can also immensely be helpful in its development persuasion. But emphasizing development policy implementation is crucial. Fostering social cohesion and reconciliation can also help build a more inclusive society for all citizens.
But it is difficult for the country to desirably develop it’s economic, social and other aspects without effective relations with different countries and organizations. Fostering partnerships with international organizations and neighboring countries can especially help attract foreign investment and support regional economic integration efforts. Strengthened steps are also vital to address climate-related hazards including floods, drought and cyclones. But Timor Lestle needs to put emphasis on the development of future leadership. East Timor also needs to address its human rights concerns including arbitrary killings and worst forms of child labor.
