One of the world's poorest nations, Timor-Leste (also known as East Timor) continues to face many challenges in consolidating its democracy and developing its economy, though it has made considerable strides in building stability and democratic institutions. The current U.N. mission, the United Nations Integrated Mission in Timor-Leste (UNMIT), has been present since a breakdown in civil order in 2006. Timor-Leste emerged in 2002 as an independent state after a long history of Portuguese colonialism and, more recently, Indonesian rule. Independence followed a U.N.-organized 1999 referendum in which the people of Timor-Leste overwhelmingly voted for independence, after which Indonesian-backed pro-integrationist militias rampaged, killing an estimated 1,300 civilians and destroying much of Timor-Leste's infrastructure. Under several different mandates, the United Nations has provided a range of assistance, such as peacekeeping, supporting capacity building efforts to strengthen the security and justice sectors, and ensuring the provision of humanitarian and reconstruction aid. The current situation in Timor-Leste is relatively calm compared with past periods of political strife and insurrection. The main threat to Timor-Leste is not external, but rather internal strife resulting from weak state institutions, rivalries among elites and between security forces, and large-scale youth unemployment. The reintroduction of peacekeeping troops and the UNMIT mission in 2006, the flow of revenue from hydrocarbon resources in the Timor Sea, and improved political stability are helping Timor-Leste move towards more effective democratic government. Congressional concerns have focused on internal security and the role of the United Nations, human rights and the development of democratic institutions and the nation's parliament. Recent Developments

			2012 Elections

Timor-Leste held two-stage Presidential elections in March and April, 2012, and will hold nationwide Parliamentary polls on July 7. The U.N. described the presidential polls as "clean and orderly." Taur Matan Rauk

President Taur Matan Rauk is a former Army chief. Timor-Leste formally became independent on May 20, 2002. The United States representative pointed to several key priorities, while commending efforts made towards achieving them, including:
the transfer of primary policing responsibilities from UNMIT to the PNTL and the importance of Timor-Leste maintaining stability in the election period and further developing national security institutions; the continued preparations of the Government of Timor-Leste for the upcoming elections and ongoing efforts of the United Nations and other international partners in supporting that process; the development of competent and strong rule of law and governance institutions; the ongoing collaborative effort between UNMIT and the Government of Timor-Leste in developing a transition plan for UNMIT's withdrawal; and the future engagement of the United Nations and the Security Council in Timor-Leste after UNMIT's expected withdrawal, which needs to include the Government of Timor-Leste and the international community. Under a previous agreement, decisions on how to exploit Timor Sea energy resources were to be made on a commercial basis.
The Democratic Republic of Timor-Leste gained independence on May 20, 2002, after a long history of Portuguese colonialism and, more recently, Indonesian rule. The young nation, with a population of 1.1 million, has been aided by the United Nations under several different mandates under which the U.N. has provided peacekeeping, humanitarian, reconstruction and capacity building assistance to establish a functioning government. The current United Nations Integrated Mission in Timor-Leste (UNMIT) is slated to withdraw from the nation at the end of 2012.
The independence of Timor-Leste (also known as East Timor) followed a U.N.-organized 1999 referendum in which the East Timorese overwhelmingly voted for independence. In response, Indonesian-backed pro-integrationist militias went on a rampage, killing an estimated 1,300 people and destroying much of Timor-Leste's infrastructure. For several years thereafter, the international community's main concern focused on possible tensions in East Timor's relations with Indonesia. Since 2006 the main threat to East Timor has been internal strife resulting from weak state institutions, rivalries among elites and security forces, deep-set poverty, unemployment, east-west tensions within the country, and population displacement.
The situation in Timor-Leste in 2012 is relatively calm compared with recent periods of political strife and insurrection. The country held Presidential elections in March and April, which led to the election of Tuar Matan Rauk, a former army chief. The U.N. described the polls as "peaceful, smooth and orderly." Parliamentary polls are due on July 7. Stability has been aided by the 2006 reintroduction of peacekeeping troops and a United Nations mission, the flow of revenue from hydrocarbon resources in the Timor Sea, and improved political stability. East Timor has significant energy resources beneath the Timor Sea.
That said, Timor-Leste faces many serious challenges as it seeks to establish and deepen a stable democracy and develop its economy. Many institutions in the young nation remain weak, and tensions remain between the young country's political elites and among security forces. Timor-Leste remains one of Asia's poorest nations, ranking 147th out of 187 countries on the United Nations Human Development Index. Generating economic opportunity and employment are among the government's greatest challenges.
Congressional concerns have focused on security and the role of the United Nations, human rights, East Timor's boundary disputes with Australia and Indonesia, and the strengthening of the nation's political system and functioning of its parliament. Key challenges for Timor-Leste include creating enough political stability to focus on building state capacity and infrastructure, providing employment, and preventing the oil-and-gas revenue stream from being squandered by corruption or poor investment decisions.