The newly independent Timor-Leste has established itself as one of the fastest
growing economies in Asia and the Pacific. A concentration of economic activity
in the capital has, however, raised the concern that the better off members of
society are capturing most of the benefits. This study examines the first decade
of the restoration of independence to assess if Timor-Leste’s economic growth
has been inclusive. Opportunity is found to have been provided to a larger share
of the population, with those on lower as well as higher living standards enjoying
more opportunity. Inequality in opportunity is generally in decline. It concludes
that inclusive growth has been achieved. To maintain progress, it will be
important to (i) prioritize support for the poorest Timorese, and (ii) achieve
improvements in some lagging sectors, notably roads, water, and sanitation.
Minimum standards of service delivery are proposed as a safeguard for the
poorest Timorese.