ASIA/EAST TIMOR - East Timor ever poorer: economy and development among the slowest in Asia

Thursday, 9 March 2006

Dili (Fides Service) - The youngest nation in Asia East Timor which will celebrate the 4th anniversary of its independence from Indonesia on May 20, lives in a situation of concerning economic under development and poverty which could jeopardise its future. A recent report by the UN Development Programme said the country suffers from a situation of widespread poverty and that urgent international support at various levels in necessary to prevent the people from falling into a pit of hunger, hardship and death.
Half the population of 900,000 has no access to water, is illiterate and lives under the poverty line, says the UN report “The path to rise up from poverty: integrated rural development”. More than 60 of every 1000 children die before the age of 1 and adults can expect to live no more than 55 years. Chronic poverty has increased since the country obtained independence: 60% of the GNP is derived from foreign loans and aid from the UN World Food Programme. Falling prices of coffee, East Timor’s main export, hit an economy already struggling with World Monetary Fund structural adjustment measures. The main activity, subsistence farming involving 85% of the labour force, fails to produce sufficient income.
There is new hope for economic growth after deal with Australia for revenues from disputed oil and gas fields in the Timor Sea. The pact signed in Sydney ensures a 50:50 revenue split from the Greater Sunrise energy field in the strip of sea between the island of Timor and Australia. The agreement ends a long-running dispute over lucrative energy reserves in the Timor Sea and was necessary since the previous agreement was stipulated between Australia and Indonesia of which East Timor was still a part.
The Democratic of East Timor was born officially on 20 May 2002, after referendum which voted yes to independence from Indonesia and a period of administration by the United Nations. In view of East Timor’s situation of chronic poverty the foreign minister Josè Ramos Horta asked the United Nations Organisation to extend its presence for another 20 years to accompany the process of political and economic growth.
In this picture besides meeting the spiritual needs of the population 95% Catholic, gathered in two diocese Dili and Baucau, the local Catholic Church provides social and health assistance and co-ordinates development programmes to improve farming. A major challenge for the fledgling nation is to create a network of schools, hospitals and organise efficient bureaucracy in the different sectors of public life. (PA) (Agenzia Fides 9/3/2006 righe 28 parole 283)


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