East Timor is an electoral democracy. The directly elected president is a largely symbolic figure, with formal powers limited to the right to veto legislation and make certain appointments. In keeping with the five-year terms stipulated in the constitution, elections for the presidency and the unicameral Parliament were held in 2007, marking the country’s first direct legislative elections since the Fretilin-dominated Constituent Assembly became the Parliament after writing the charter in 2002. The elections were generally deemed free and fair. Personalities and old loyalties tied to the resistance movement of the 1970s influence political outcomes more than policy issues, as evidenced by Kay Rala Xanana Gusmao and Jose Ramos Horta’s retention of the country’s two top executive posts.

Despite the initial impasse over the results, the legislative elections ultimately brought greater pluralism to Parliament and an end to Fretilin’s dominance of government. However, the new AMP coalition government enjoys only a slim majority; initially it held 37 out of 65 seats. In May 2008, the leader of the Social Democratic Association of Timor (ASDT) threatened to leave the AMP coalition after coming to an agreement with Fretilin. However, legislators from ASDT did not themselves drop from the coalition. Two legislators from the National Democratic Union for Timorese Independence (UNDERTIM) party joined the AMP coalition in May, giving the coalition a total of 39 seats. The government was able to maintain cohesion during the year despite rumors of an impending collapse and Fretilin’s ongoing efforts to challenge its constitutional and popular legitimacy.

Frustration with corruption and nepotism was one reason for Fretilin’s relatively poor showing in the 2007 elections; accusations of graft have continued under the AMP government. East Timor dropped from the 43rd percentile to the 39th percentile in the Fiscal Year 2009 Millennium Challenge Account report, primarily due to its low corruption score. The country was ranked 145 out of 180 countries surveyed in Transparency International’s 2008 Corruption Perceptions Index. In July 2008, students protested the purchase of cars for members of Parliament, and tear gas was used to disperse the crowd. Later that month Prime Minister Gusmao signed an exclusive $14.4 million food-security contract with a company owned by the vice president of the CNRT.

The free flow of information in East Timor is hampered primarily due to shortages of infrastructure and resources. An estimated 68 percent of Timorese are reached by the national broadcaster Radio Timor-Leste, though few community radio stations are functional. Since 2007, East Timor Television (TVTL) has been available via satellite outside of Dili. East Timor has two major daily newspapers and two major weekly papers. The daily Suara Timor Lorosae is generally considered to be pro-Fretilin, while the weekly Jornal Nacional Diaro is loosely affiliated with the CNRT. Less than one percent of the population has access to the internet.

Press freedom is limited by the criminal defamation provisions of the Indonesian penal code that continue to apply until a new East Timorese penal code is promulgated. An East Timorese penal code was finalized in October 2008, however, and was awaiting ratification at year’s end. The original draft of the bill maintained the defamation provisions of the Indonesian code, although the Ministry of Justice removed the criminal defamation provisions in September after public consultation, a move hailed by rights activists as a significant step toward expanding press freedom. Earlier in the year, Gusmao threatened to arrest local journalists who he claimed were contributing to instability in the wake of the February assassination attempt. Separately, in late February, a senior staff member of the East Timor Post was beaten while in military police custody. Journalists often feel intimidated and consequently practice self-censorship.

East Timor is a secular state, but the Roman Catholic Church plays a central role; 98 percent of the population is Roman Catholic. Church rules prohibit persons living under religious vows from holding political office. There are no significant threats to religious freedom or clashes among the country’s different religious groups, which include a small minority of Muslims, mostly from Indonesia, and a growing number of evangelical Christian denominations. The practice of indigenous rituals remains strong, despite the dominance of the Catholic faith. Academic freedom is generally respected, though religious education is compulsory in schools.

Freedoms of association and assembly are constitutionally guaranteed, yet the 2004 Law on Freedom, Assembly, and Demonstration regulates political gatherings and prohibits demonstrations aimed at “questioning constitutional order” or disparaging the reputations of the head of state and other government officials. The law requires that demonstrations and public protests be authorized in advance.

East Timor’s labor code, which is based on International Labor Organization standards, permits workers other than police and army personnel to form and join worker organizations. It also guarantees the rights to bargain collectively and to strike, although written notice must be given 10 days before a strike. Foreigners are barred from joining unions. Unionization rates are low due to high unemployment and the fact that more than 80 percent of the working population is employed in the informal sector.

The country suffers broadly from weak rule of law, a prevailing culture of impunity, and inadequate security forces. The legal system is fragile, with thousands of cases backlogged. Due process rights are often restricted or denied, largely because of a lack of resources and personnel. In May 2008, 94 criminals were pardoned, among them former interior minister Rogerio Lobato. His conviction had been hailed as a victory for the justice system in 2007, and his release was widely denounced. Also released was the pro-Indonesia militia leader Joni Marques, who had been convicted of crimes against humanity in 2000.

While the security situation has improved slightly, the country’s future stability is in jeopardy. In September 2008, a six-month amnesty to collect illegal weapons ended; rather than extend the amnesty, the government chose to focus on passing a gun bill that could allow civilians to own firearms. The initial bill was defeated twice in Parliament. Meanwhile, measures to weed out corruption and professionalize the police force (PNTL) have created internal divisions similar to those within the army that sparked the 2006 unrest. In October, police checkpoints were set up to prevent officers from taking weapons home after work, after leaflets were distributed warning of action “against the government” if the new police commander originated from the eastern part of the country.

Approximately 1,500 UN police remain in East Timor to uphold internal security; there is currently no timeline for their withdrawal. The Gusmao government called for the Australian-led International Security Force (ISF) to remain throughout 2008 and the UN mission through 2012. Neither the PNTL nor the F-FDTL enjoy the trust and confidence of the population, and significant tensions dating back to the independence struggle persist between the two forces

The final report of the Commission on Truth and Friendship (CTF) was released in July 2008, concluding that the Indonesian government and military organized and directed the scorched-earth campaign after the independence vote in 1999. Both the Indonesian and East Timor presidents accepted the findings, while the East Timor Parliament has postponed debate on the report. The Catholic Church in East Timor had opposed the creation of the CTF and rejected the report. The commission had been formed after efforts to prosecute and convict Indonesian officials under the Commission for Reception, Truth, and Reconciliation in East Timor (CAVR) were halted in 2005. In June 2007, President Ramos Horta agreed to grant amnesty for perpetrators of crimes against humanity on the condition that they publicly confess to the CTF.

Equal rights for women are constitutionally guaranteed, yet domestic violence remains a persistent problem. It is estimated that half of all women were victims of gender-based crimes in 2008, while only a marginal fraction of cases of abuse were reported to the police. The country’s weak legal system, coupled with the prevalence of customary law at the local level, means that abuse is rarely prosecuted. While women’s participation in government remains much lower than that of men, women hold 18 out of 65 seats in Parliament and cabinet posts for three key ministries: Justice, Finance, and Social Affairs, Labor, and Solidarity.