Soon after the independence ballot that led to East Timor's violent break from Indonesia last August, many observers had predicted the new nation might never sustain its own economy and remain reliant upon foreign aid. After centuries of colonial misrule by Portugal and 25 years of corrupt and repressive Indonesian occupation, East Timor is one of the poorest parts of Southeast Asia. Much of its infrastructure lies in ruins, destroyed by angry, pro-Indonesian militia gangs after last year's referendum supported independence. Outside the capital, Dili, electricity and water supplies are sporadic at best. In the cities and towns, unemployment runs at about 80 percent.
Gangs of youths roam the streets looking for ways to make money.
Little foreign investment is coming in due to an uncertain political future and messy land disputes. Yet the outlook for coffee is bright. East Timor's coffee factories and crops weren't destroyed in the violence. Starbucks Corp., the U.S.-based coffee giant, already is one of East Timor's best clients, and there is hope the territory's beans will end up in many of the world's cappuccinos, lattes and espressos. That figure should multiply several times when new fields are tapped by 2003.