The Portuguese began to trade with the island of Timor in the early 16th century and colonized it in mid-century. Skirmishing with the Dutch in the region eventually resulted in an 1859 treaty in which Portugal ceded the western portion of the island. Imperial Japan occupied Timor-Leste from 1942 to 1945, but Portugal resumed colonial authority after the Japanese defeat in World War II.

Timor-Leste declared itself independent from Portugal on Nov. 28, 1975, and was invaded and occupied by Indonesian forces nine days later. It was incorporated into Indonesia in July 1976 as the province of Timor-Leste. An unsuccessful campaign of pacification followed over the next two decades, during which an estimated 100,000 to 250,000 individuals lost their lives.

On Aug. 30, 1999, in a UN-supervised popular referendum, an overwhelming majority of the people of Timor-Leste voted for independence from Indonesia. Between the referendum and the arrival of a multinational peacekeeping force in late September 1999, anti-independence Timorese militias - organized and supported by the Indonesian military - commenced a large-scale, scorched-earth campaign of retribution.

The militias killed approximately 1,400 Timorese and forcibly pushed 300,000 people into western Timor as refugees. The majority of the country's infrastructure, including homes, irrigation systems, water supply systems, and schools, and nearly 100 percent of the country's electrical grid were destroyed. On Sept. 20, 1999, the Australian-led peacekeeping troops of the International Force for East Timor (INTERFET) deployed to the country and brought the violence to an end.

On May 20, 2002, Timor-Leste was internationally recognized as an independent state. In March of 2006, a military strike led to violence and a near breakdown of law and order. Over 2,000 Australian, New Zealand, and Portuguese police and peacekeepers deployed to Timor-Leste in late May. Although many of the peacekeepers were replaced by UN police officers, 850 Australian soldiers remained as of Jan. 1, 2007.

Source: CIA World Fact Book

Population: 1,084,971 note: other estimates range as low as 800,000 (July 2007 est.)

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Age structure: 0-14 years: 35.7% (male 196,825/female 190,454) 15-64 years: 61.1% (male 337,816/female 325,094) 65 years and over: 3.2% (male 16,823/female 17,959) (2007 est.)

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Median age: total: 21.1 years male: 21.2 years female: 21.1 years (2007 est.)

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Population growth rate: 2.059% (2007 est.)

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Birth rate: 26.77 births/1,000 population (2007 est.)

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Death rate: 6.19 deaths/1,000 population (2007 est.)

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Net migration rate: 0 migrant(s)/1,000 population (2007 est.)

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Sex ratio: at birth: 1.05 male(s)/female under 15 years: 1.033 male(s)/female 15-64 years: 1.039 male(s)/female 65 years and over: 0.937 male(s)/female total population: 1.034 male(s)/female (2007 est.)

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Infant mortality rate: total: 44.46 deaths/1,000 live births male: 50.47 deaths/1,000 live births female: 38.14 deaths/1,000 live births (2007 est.)

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Life expectancy at birth: total population: 66.6 years male: 64.28 years female: 69.04 years (2007 est.)

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Total fertility rate: 3.45 children born/woman (2007 est.)

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HIV/AIDS - adult prevalence rate: NA

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HIV/AIDS - people living with HIV/AIDS: NA

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HIV/AIDS - deaths: NA

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Nationality: noun: Timorese adjective: Timorese

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Ethnic groups: Austronesian (Malayo-Polynesian), Papuan, small Chinese minority

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Religions: Roman Catholic 98%, Muslim 1%, Protestant 1% (2005)

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Languages: Tetum (official), Portuguese (official), Indonesian, English note: there are about 16 indigenous languages; Tetum, Galole, Mambae, and Kemak are spoken by significant numbers of people

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Literacy: definition: age 15 and over can read and write total population: 58.6% male: NA% female: NA% (2002)

In late 1999, about 70% of the economic infrastructure of Timor-Leste was laid waste by Indonesian troops and anti-independence militias, and 300,000 people fled westward. Over the next three years, however, a massive international program, manned by 5,000 peacekeepers (8,000 at peak) and 1,300 police officers, led to substantial reconstruction in both urban and rural areas. By the end of 2005, all refugees either returned or resettled in Indonesia. The country faces great challenges in continuing the rebuilding of infrastructure, strengthening the infant civil administration, and generating jobs for young people entering the work force. The development of oil and gas resources in nearby waters has begun to supplement government revenues ahead of schedule and above expectations - the result of high petroleum prices - but the technology-intensive industry does little to create jobs for the unemployed, because there are no production facilities in Timor and the gas is piped to Australia. The parliament in June 2005 unanimously approved the creation of a Petroleum Fund to serve as a repository for all petroleum revenues and preserve the value of Timor-Leste's petroleum wealth for future generations. The mid-2006 outbreak of violence and civil unrest disrupted both private and public sector economic activity. Real non-oil GDP growth in 2006 is estimated to have been negative. The underlying economic policy challenge the country faces remains how best to use oil-and-gas wealth to lift the non-oil economy onto a higher growth path and reduce poverty.

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GDP (purchasing power parity): $370 million (2004 est.)

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GDP (official exchange rate): $349 million (2005)

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GDP - real growth rate: 1.8% (2005 est.)

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GDP - per capita (PPP): $800 (2005 est.)

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GDP - composition by sector: agriculture: 8.5% industry: 23.1% services: 68.4% (2004)

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Labor force: NA

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Labor force - by occupation: agriculture: NA% industry: NA% services: NA%

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Unemployment rate: 50% estimated; note - unemployment in urban areas reached 20%; data do not include underemployed (2001 est.)

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Population below poverty line: 42% (2003 est.)

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Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

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Distribution of family income - Gini index: 38 (2002 est.)

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Inflation rate (consumer prices): 1.4% (2005)

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Budget: revenues: $107.7 million expenditures: $73 million; including capital expenditures of $NA (2004 est.)

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Agriculture - products: coffee, rice, corn, cassava, sweet potatoes, soybeans, cabbage, mangoes, bananas, vanilla

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Industries: printing, soap manufacturing, handicrafts, woven cloth

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Industrial production growth rate: 8.5%

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Electricity - production: NA kWh

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Electricity - consumption: NA kWh (2004)

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Electricity - exports: 0 kWh (2004)

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Electricity - imports: 0 kWh (2004)

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Oil - proved reserves: 0 bbl

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Exports: $10 million; note - excludes oil (2005 est.)

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Exports - commodities: coffee, sandalwood, marble; note - potential for oil and vanilla exports

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Exports - partners: Indonesia 100% (2006)

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Imports: $202 million (2004 est.)

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Imports - commodities: food, gasoline, kerosene, machinery

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Economic aid - recipient: $153 million (2004 est.)

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Currency (code): US dollar (USD)

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Exchange rates: the US dollar is used

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Fiscal year: 1 July - 30 June