Timor-Leste, a nation rich in history and cultural diversity, stands on the brink of a significant milestone as it aims for full membership in the Association of Southeast Asian Nations (ASEAN) by 2025. This Southeast Asian country, once a Portuguese colony for over four centuries, has been navigating a complex web of historical ties and strategic partnerships to solidify its place on the regional stage. With a population of 1.4 million and a remarkably low debt-to-GDP ratio, Timor-Leste presents a unique case of economic resilience and diplomatic ambition.
Gaining independence in 2002 after years of struggle, Timor-Leste has steadily worked towards establishing itself as a stable and sovereign state. Its journey towards ASEAN membership began in 2011, culminating in the adoption of a comprehensive roadmap for full integration in May 2023. The nation views ASEAN membership as a critical step in advancing its regional influence and economic development.
Timor-Leste's economic profile is noteworthy, with its total debt constituting only 13% of its GDP, the lowest globally. This fiscal prudence is coupled with strategic borrowing solely from the Asian Development Bank, World Bank, and International Finance Corporation, avoiding loans from China or Western financial institutions. President José Ramos-Horta highlights this achievement as a testament to the country's prudent economic management.
“We don't have any loans from China, and we don't have any loans from Western banks. In total, our total debt is only 13 per cent of our gross domestic product (GDP), the lowest in the world. Second, our loans are only with the Asian Development Bank, with World Bank, International Finance Corporation, and (are) very small,” – Timor-Leste’s President José Ramos-Horta
Timor-Leste's relationship with China is particularly notable, marked by mutual respect and strategic collaboration. The Chinese-funded presidential palace stands as a symbol of this partnership. President Ramos-Horta acknowledges China's role in enhancing Timor-Leste's economic landscape.
“Generally, Chinese presence in Timor-Leste has been enormously beneficial to our economy,” – Timor-Leste’s President José Ramos-Horta
Despite its strong ties with China, Timor-Leste maintains a balanced foreign policy approach. President Ramos-Horta emphasizes an open-minded perspective towards global powers, underscoring the multifaceted nature of international relations.
“The US is not evil as some claim. (It) is not black and white. It's not all good, all bad,” – Timor-Leste’s President José Ramos-Horta
Timor-Leste's cultural heritage reflects a blend of Portuguese, Indonesian, and Asian influences, contributing to its vibrant national identity. The nation's unique history with Indonesia, with which it shares the island of Timor, adds another layer to its geopolitical narrative. The relationship between these two nations has evolved from conflict to cooperation, exemplifying Timor-Leste's commitment to regional harmony.
President Ramos-Horta expresses optimism about Timor-Leste's prospective ASEAN membership and the benefits it could bring. He views ASEAN as a platform for economic growth and stability, emphasizing Timor-Leste's readiness to contribute positively to the regional bloc.
“The best contribution we can offer ASEAN is precisely that Timor-Leste is not a nuisance. Timor-Leste is not unstable, not a failed country. We are not a problem,” – Timor-Leste’s President José Ramos-Horta
The president also acknowledges the challenges faced by smaller nations within ASEAN but remains confident in Timor-Leste's ability to navigate these complexities.
“So not every country has been able to do that. We have done it already – more than 70 per cent. Many ASEAN countries are saying there is no need or not fair to expect Timor-Leste to implement all the treaties. It's just enough that we have done plenty,” – Timor-Leste’s President José Ramos-Horta
Timor-Leste's aspirations extend beyond economic integration; they encompass cultural exchange and regional cooperation. The country's special relationship with Singapore serves as an example of its diplomatic endeavors. President Ramos-Horta has often expressed admiration for Singapore's achievements and governance.
As Timor-Leste moves closer to ASEAN membership, it continues to foster positive relations with neighboring countries such as Indonesia and Australia. These relationships are crucial for ensuring regional stability and economic collaboration.
The nation's diverse economy mirrors its geopolitical strategy, blending Chinese and Western influences to create a resilient economic framework. This approach allows Timor-Leste to leverage its strategic position and maximize opportunities for growth.
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