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Tough warning to newest nation

Source
South China Morning Post - July 27, 2005

Roger Maynard, Sydney – A report on the future of East Timor by the World Bank has painted a bleak picture of a nation in danger of imploding as it copes with the twin pressures of poverty and corruption.

The strongly worded assessment of the tiny state's prospects concludes that while it has performed better than other countries in the aftermath of conflict, its progress remains fragile.

"Establishing a well-functioning state will take years, if not decades," the report says.

East Timor, which is the world's newest nation, became independent from Indonesia after decades of fighting and a 1999 referendum.

Australia, its southerly neighbour, helped bring stability to the country by sending a large contingent of peacekeeping troops to establish law and order, and by contributing generously to infrastructure and development projects.

But six years later, major challenges remain, the World Bank concedes, acknowledging that the establishment of a functioning democracy would probably take decades.

"Governance and corruption problems are beginning to emerge," the report observes.

"Communication between the government and the population is inadequate and often ineffective, resulting in limited mutual understanding.

"Timor-Leste is at a juncture where it can consolidate gains and create conditions for sustained growth and poverty reduction, or descend down a path of poor governance, continuously increasing poverty and inequality and possibly renewed conflict," it warns.

Even the billions of dollars expected to be generated by oil and gas reserves beneath the Timor Sea could be at risk.

Commenting on the restricted report, the contents of which were exclusively published in yesterday's The Australian newspaper, the World Bank country manager for East Timor, Elisabeth Huybens, said last night that while the new nation's achievements had been remarkable, it was important to strike a note of caution.

"Timor-Leste is at a crossroads," she said. "It is blessed with rich resources and natural beauty... but it must be vigilant in avoiding the tragic mistakes of some young nations whose wealth has proved to be a liability."

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