Skip to main content
University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

International Aid and Poverty Reduction – East Timor

E. Timor aid _ where did billions go?, By Anthony Deutsch (AP), September 7, 2009, Washington Post: “A decade after tiny East Timor broke from Indonesia and prompted one of the most expensive U.N.-led nation-building projects in history, there is little to show for the billions spent. The world has given more than $8.8 billion in assistance to East Timor since the vote for independence in 1999, according to figures compiled by The Associated Press from the U.N. and 46 donor countries and agencies. That works out to $8,000 for each of East Timor’s 1.1 million people, one of the highest per person rates of international aid. But little of the money, perhaps no more than a dollar of every 10, appears to have made it into East Timor’s economy. Instead, it goes toward foreign security forces, consultants and administration, among other things. In the meantime, data from the International Monetary Fund, World Bank, World Food Program, U.N. Development Program and others show the money has done little to help the poor. In fact, poverty has increased. Roads are in disrepair, there is little access to clean water or health services, and the capital is littered with abandoned, burned-out buildings where the homeless squat…”