Official name: Democratic Republic of Timor-Leste.
Geographical location :
Island nation in Southeast Asia, occupying the eastern half of the island of Timor. It borders Indonesia to the west, and it includes the exclave Oecusse within the western half. To its south lies the Timor Sea.
Why we consider Timor-Leste (East Timor) a “failed state”
Although Timor-Leste achieved independence in 2002 and has made progress in institution building, many analysts warn of fragility arising from dependency, weak state capacity, and centralized governance.
The early designs of its post-conflict institutions emphasized strong central control at the expense of local decentralization, limiting administrative reach into rural zones.
Critics argue that the state is overly reliant on oil revenue and aid flows, undermining incentives for economic diversification and sustainability.
Some observers contend that Timor-Leste is on the cusp of becoming a failed state due to fiscal and institutional rigidities, while others dispute such label, noting that violence is limited and many formal institutions function.
(i.e. 1,400,638)
nominal (Data Commons), current US$
Note. World Bank indicator, alternate source: trading Economics cites ~ USD 1,235.83
