slightly larger than Connecticut; almost half the size of Maryland
The island of Timor was actively involved in Southeast Asian trading networks for centuries, and by the 14th century, it exported sandalwood, slaves, honey, and wax. The sandalwood trade attracted the Portuguese, who arrived in the early 16th century; by mid-century, they had colonized the island, which was previously ruled by local chieftains. In 1859, Portugal ceded the western portion of the island to the Dutch. Imperial Japan occupied Portuguese Timor from 1942 to 1945, but Portugal resumed colonial authority after the Japanese defeat in World War II. The eastern part of Timor declared itself independent from Portugal on 28 November 1975, but Indonesian forces invaded and occupied the area nine days later. It was incorporated into Indonesia in 1976 as the province of Timor Timur (East Timor or Timor Leste). Indonesia conducted an unsuccessful pacification campaign in the province over the next two decades, during which an estimated 100,000 to 250,000 people died.
In a UN-supervised referendum in 1999, an overwhelming majority of the people of Timor-Leste voted for independence from Indonesia. However, anti-independence Timorese militias -- organized and supported by the Indonesian military -- began a large-scale, scorched-earth campaign of retribution, killing approximately 1,400 Timorese and displacing nearly 500,000. Most of the country's infrastructure was destroyed, including homes, irrigation systems, water supply systems, schools, and most of the electrical grid. Australian-led peacekeeping troops eventually deployed to the country and ended the violence. In 2002, Timor-Leste was internationally recognized as an independent state.
In 2006, Australia and the UN had to step in again to stabilize the country, which allowed presidential and parliamentary elections to be conducted in 2007 in a largely peaceful atmosphere. In 2008, rebels staged an unsuccessful attack against the president and prime minister. Since that attack, Timor-Leste has made considerable progress in building stability and democratic institutions, holding a series of successful parliamentary and presidential elections since 2012. Nonetheless, weak and unstable political coalitions have led to periodic episodes of stalemate and crisis. The UN continues to provide assistance on economic development and strengthening governing institutions. Currently, Timor-Leste is one of the world's poorest nations, with an economy that relies heavily on energy resources in the Timor Sea.
Timor-Leste’s high fertility and population growth rates sustain its very youthful age structure – approximately 40% of the population is below the age of 15 and the country’s median age is 20. While Timor-Leste’s total fertility rate (TFR) – the average number of births per woman – decreased significantly from over 7 in the early 2000s, it remains high at 4.3 in 2021 and will probably continue to decline slowly. The low use of contraceptives and the traditional preference for large families is keeping fertility elevated. The high TFR and falling mortality rates continue to fuel a high population growth rate of nearly 2.2%, which is the highest in Southeast Asia. The country’s high total dependency ratio – a measure of the ratio of dependents to the working-age population – could divert more government spending toward social programs. Timor-Leste’s growing, poorly educated working-age population and insufficient job creation are ongoing problems. Some 70% of the population lives in rural areas, where most of people are dependent on the agricultural sector. Malnutrition and poverty are prevalent, with 42% of the population living under the poverty line as of 2014.
During the Indonesian occupation (1975-1999) and Timor-Leste’s fight for independence, approximately 250,000 Timorese fled to western Timor and, in lesser numbers, Australia, Portugal, and other countries. Many of these emigrants later returned. Since Timor-Leste’s 1999 independence referendum, economic motives and periods of conflict have been the main drivers of emigration. Bilateral labor agreements with Australia, Malaysia, and South Korea and the presence of Timorese populations abroad, are pull factors, but the high cost prevents many young Timorese from emigrating. Timorese communities are found in its former colonizers, Indonesia and Portugal, as well as the Philippines and the UK. The country has also become a destination for migrants in the surrounding region, mainly men seeking work in construction, commerce, and services in Dili.