History • Portuguese colony • Then became an Indonesian colony in 1976 • Fight for independancy • Independance in 1999 • Recognized as an independant country in 2002
Economy • Lower-‐middle –income economy • ConJnues to suﬀer aLereﬀects of independence struggle against Indonesia • 70% infrastructure destroyed by Indonesian troops (1999) • Violence erupted again in 2006 • Human Development Index = 162nd • Relies mainly on internaJonal assistance
ECONOMY 1 Of the poorest countries in the world … GDP GDP nominal $590 GDP nominal PPP $2,741 GDP nominal / capita $542 GDP nominal PPP / capita $2,521
Economy Timor Gap: Sea bounderies issues for Petroleum Petroleum = 1/3rd of East Timor GDP
CULTURAL Religion % Catholics 97% Muslims 1% Protestants 1% Hindus 0,5% Buddhists 0,1% TradiJonal Animist minoriJes … Language Status NaJonal languages Tetum & Portuguese Business languages Indonesian & English
BUSINESS CULTURE • NO East Timor in Hofstede Database !!! • Compare w/ South-‐East Asia – High level of Power Distance – Risk Averse – Low masculanity index – Long distance, Confusianism?
NEGOTIATING • Use of silence in business: – +ve – -‐ve • Opposite of Western coutries: – Bargaining is a way of life for Timorese
TABOOS • War • Recent history • Present poliJcal situaJon with Indonesians • Sexual violence A real problem in East Timor
RECOMMENDATIONS • Quite new country • SJll gejng structured economically + poliJcally • Can’t be compared to Indonesia – Diﬀerent culture heritage = Lack of informaJon in terms of Business cultural dimensions
RECOMMENDATIONS Know about the: – Historical – Economic – PoliJcal background of East Timor! And use common sense and adaptability!
Wanna go? • NY -‐> San Francisco • San Francisco -‐> Sidney • Sidney -‐> Dili • 45 hrs • $3,000