The Democratic Republic of Timor-Leste (East Timor) elected its first 88-member constituent assembly in free and fair elections, held under UN supervision, in 2002. The UN Mission of Support was closed in May 2005. The President, who is head of state, is elected by for a 5-year term. The President has veto power over some legislation and appoints the leader of the majority party as the Prime Minister. The Prime Minister presides over the Cabinet.

An outbreak of violence in 2006 resulted in the UN Security Council sending in another peacekeeping force to quell the unrest. Riots in the capital, Dili, supporting 591 soldiers dismissed for deserting their barracks, deteriorated into widespread rioting. The Prime Minister was accused of arming a civilian hit squad with orders to kill his political rivals. The President and several ministers in government told the Prime Minister to resign or they would. The Prime Minister said he would resign only if the party in power, Fretilin, wanted him to do so. On June 26, 2006, the Prime Minister resigned, and his successor was appointed on July 8. As fighting between rival militias and the military subsided, Australian peacekeepers began to withdraw from the country, but more than 2000 peacekeepers and police officers will remain in the capital until elections are held at the end of 2007.

There are 23 women in the assembly, and 3 women are senior Cabinet ministers. The Prime Minister and the Minister of Defence are members of ethnic minority groups. The judiciary is independent in law and in practice. However, the legal system is said to be inconsistent in its application of law. Indonesian laws and the UN's transitional regulations are in force until a new system is developed. UN regulations supersede Indonesian law, but in some cases this principle is abandoned. All legislation and Supreme Court decisions as well as decisions of government committees must be published in the official gazette or are rendered null and void.

In 2004 the governments of Indonesia and East Timor jointly formed a Truth and Friendship Commission (TFC) to address human rights violations in East Timor in 1999. Widespread public criticism in East Timor of the TFC results from the belief that it does not address true accountability; public support is strong for an international tribunal to bring to justice those indicted of human rights crimes who are free in Indonesia. A report to the UN High Commissioner for Human Rights stated that the serious crimes process in East Timor ensured "a degree of accountability" for those responsible for the crimes committed in 1999 and that the Ad Hoc Tribunal in Indonesia was "manifestly inadequate."

The police force is reported to be poorly trained and equipped and is accused of abuse of authority and unprofessional conduct. The Serious Crimes Unit and Special Panels on Serious Crimes are responsible for securing indictments for genocide, war crimes and crimes against humanity that occurred in 1999. The Special Panels have been abolished but can be reconstituted as needed as long as they meet the requirement of comprising 2 international judges and 1 local judge.

Reports of corruption in government institutions and a lack of transparency in the procurement process are cited as being of particular concern. Customs and border officials are accused of facilitating smuggling from Indonesia. Members of the public have access to the rules governing the national budget and accounts, and the new Petroleum Fund Law provides transparency and oversight.

Freedom of speech and of the press are guaranteed in law and in practice, though government officials reportedly try to interfere with these rights. A UN executive order decriminalised defamation, but the Court of Appeals ruled that the order could not overturn the Indonesian statutes defining libel and defamation as criminal offences. A newspaper that published articles on famine deaths denied by the government was evicted from the headquarters it had occupied since 1993, and the timing suggested a political motive. When the home of a journalist was searched without a warrant, the journalist's report on the incident was followed by his arrest and detention for 24 hours. Press editorials criticise the government, but defamation suits against the media have increased. The Cabinet has amended the penal code to criminalise defamation and insults to a person's honour, but the President has not signed the amendment into law. Internet access is not restricted.

Trafficking in women and children for prostitution is reported. Police and customs officials are accused of collusion in trafficking. A working group has been established to monitor and control trafficking. An NGO assists victims of trafficking.

Foreigners are prohibited from taking part in political activities, and foreign and international NGOs are precluded from undertaking projects to promote the development of civil society, including assistance to labour unions. The government can prohibit foreigners from holding conferences that it believes will jeopardise the interests of the country. An exception is made for bilateral or multilateral assistance programmes to train or strengthen democratic institutions that are strictly academic in nature.

Primary education is legally compulsory and free, but legislation does not establish the minimum level of education to be provided, and free education is not yet available. Some 25% of primary school age children are not in school, with more rural than urban children being out of school. The pupil/teacher ratio in primary school is very high. Only 30% of children aged 13 to 15 are enrolled in lower secondary education; again the rural/urban divide is noted. The Prime Minister has signed decrees to establish an interministerial working group to draft a Children's Code and create a National Commission for Children.

Anti-government demonstrations in April and May 2006 were organised by officials of the Roman Catholic Church protesting a decision to move religious education from the core public school curriculum and make it an after-school subject without state funding. The Prime Minister and two Catholic bishops signed a joint declaration making the teaching of religion a regular discipline in the public school curriculum, though parents may opt to have their children not take part in religious education classes.

A 2-year programme begins at age 4. The Gross Enrolment Rate (GER) is 11%.

Education is compulsory for ages 7 to 15. Primary school begins at age 6 and lasts 6 years. The GER is 140%. There are 3,612 primary teachers (30% female). The pupil/teacher ratio (PTR) is 51 : 1.

Secondary education begins at age 12 and lasts 6 years. The GER is 41% in lower secondary and 26% in upper secondary school. There are 1,646 secondary teachers, 1,069 in lower secondary and 577 in upper secondary schools. The PTR is 28 : 1 in lower secondary and 29 : 1 in upper secondary education.

6,349 students (53% female) study in tertiary institutions, for a GER of 10%. At the same time, 266 Timorese students are studying abroad, mainly in Portugal (229), Cuba (20), Macao, China (6) and Japan (3).

Legislation has not been enacted to provide support for persons with disabilities, despite constitutional provisions. While the law does not prohibit discrimination against persons with disabilities, reports do not cite discrimination in education or in other state services. Difficulty of access to schools excludes many children with disabilities. Reports cite discriminatory or degrading treatment of persons with mental disabilities due to a lack of treatment resources.

The law provides for the granting of asylum or refugee status to persons in accordance with the 1951 UN Convention Relating to the Status of Refugees and its 1967 Protocol. Human rights and refugee advocates report that time limits for application for asylum contravene the convention. The government assumed responsibility for refugees in 2003. During the crisis in 2006 thousands of people sought refuge in the UN compound and in churches. Peacekeepers have brought stability once again. Education was disrupted during the riots, and many children who became refugees were unable to continue in school.

Relations are reported as good between the ethnic Timorese majority and members of several small ethnic minority groups, though there are reports of discrimination against ethnic Chinese, who constitute less than 1% of the population, and against ethnic-Malay Muslims. Tensions persist between residents of the eastern part of the country, whose cultures and languages are of Papuan origin, and the Austronesian inhabitants of the western part of the country. Though they have subsided, they remain a factor in political disputes. Constitutionally, not only citizen children but all children have a right to education.

In 2004, the Cabinet decreed that academic research on Tetum and other indigenous languages must be approved by the National Language Institute. This gave the Institute the power to refuse to authorise linguistic research that "has no scientific merit" or that "would not be advantageous to the country." Foreign researchers now require authorisation from the Institute "under penalty of manifest illegality." No reports indicate that this law has prevented academic research or been used to penalise researchers, but it bears watching.

Children under 18 may work under special circumstances. Children aged 15 to 18 can work in exceptional circumstances, and exemptions are also made for children under 15. The minimum age does not apply to family-owned businesses; many children work in agriculture. Enforcement of the labour code is very limited beyond Dili. Reports suggest that children as young as 10 are used as smugglers across the border with Indonesia.

The labour code was developed according to the International Labour Organisation's standards allowing workers to form and join trade unions. Organisation of workers is reported to have been slow. Foreigners may not be part of the administration of trade unions. Collective bargaining is allowed, but experience in negotiating contracts is limited. Workers have the right to strike. Forced or compulsory labour is prohibited, but reports indicate that police officers have forced some people to perform labour as a form of punishment. No minimum wage has been established. The standard work week is 40 hours.