East Timor was formerly a Portuguese colony and then an Indonesian colony until gaining independence in 1999. It has a lower-middle income economy that continues to suffer from the effects of its independence struggle. 70% of its infrastructure was destroyed during violence in 1999. It relies heavily on international assistance and is one of the poorest countries in the world. The majority of East Timorese are Catholic and the national languages are Tetum and Portuguese, though Indonesian and English are used for business. Understanding East Timor's history, politics, and adapting to the local culture are important for businesses operating there.

1. EAST
TIMOR
Educate
The
Expatriate
Ludovic
Bourgoin

2. Overview
of
East
Timor

3. Overview
of
East
Timor

4. History
• Portuguese
colony
• Then
became
an
Indonesian
colony
in
1976
• Fight
for
independancy
• Independance
in
1999
• Recognized
as
an
independant
country
in
2002

5. 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

6. 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

7. Economy
Timor
Gap:
Sea
bounderies
issues
for
Petroleum
Petroleum
=
1/3rd
of
East
Timor
GDP

8. 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

9. 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?

10. NEGOTIATING
• Use
of
silence
in
business:
– +ve
– -­‐ve
• Opposite
of
Western
coutries:
– Bargaining
is
a
way
of
life
for
Timorese

11. TABOOS
• War
• Recent
history
• Present
poliJcal
situaJon
with
Indonesians
• Sexual
violence
A
real
problem
in
East
Timor

12. 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

13. RECOMMENDATIONS
Know
about
the:
– Historical
– Economic
– PoliJcal
background
of
East
Timor!
And
use
common
sense
and
adaptability!

14. Wanna
go?
• NY
-­‐>
San
Francisco
• San
Francisco
-­‐>
Sidney
• Sidney
-­‐>
Dili
• 45
hrs
• $3,000

15. Wanna
know
more…?