Leveraging ASEAN Membership for Timor-Leste's Development: Issues and Recommendations

Rui Augusto Gomes

No DP-2024-33, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: To offer policy recommendations regarding the prospective accession of Timor-Leste into the Association of Southeast Asian Nations (ASEAN), this study examines the development gaps between Timor-Leste and ASEAN member countries across various dimensions. The analysis utilises statistical aggregates derived from official reports, with a particular focus on well-being indicators. While Timor-Leste has made substantial progress over the past 2 decades – transitioning from post-conflict status to an open economy characterised by reduced corruption, democracy, a free press, relative stability, and sufficient liquidity – its economic and social policies have not consistently prioritised high and sustainable growth. Consequently, challenges such as overreliance on a single commodity, insufficient human development, a pronounced rural–urban divide, a lack of decent and productive job creation, limited domestic revenue diversification, weak food security, and an underdeveloped domestic private sector persist. The research underscores the importance of modernising Timor-Leste's domestic institutions and enhancing their capacities to operate effectively in a larger, highly competitive, market-driven environment within the region and beyond. At the same time, it highlights the need to address the complex challenges that were also faced by some ASEAN Member States during their accession in the 1990s. Finally, the paper offers recommendations on how Timor-Leste can maximise the benefits of ASEAN integration.

Keywords: Economic growth; Timor-Leste; ASEAN; development gaps; poverty (search for similar items in EconPapers)
JEL-codes: F6 O2 O5 (search for similar items in EconPapers)
Date: 2025-01-31
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