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Watch part two
In 2002, East Timor became the first new nation of the 21st century, gaining independence from Indonesia after a 24-year occupation that cost around 200,000 lives.
Expectation was high that one of the poorest countries in the world could be transformed with the help of extensive oil and gas reserves.
But the subsequent years have been difficult.
In 2006, there was an outbreak of unrest prompted by poverty and unemployment and last year rebel soldiers tried to assassinate Jose Ramos-Horta, the country's president, in what many Timorese saw as an attempted coup d'etat. Though Horta was wounded he survived the attack, and the government under Chanana Gusmao, the prime minister, has been trying to foster national reconciliation and economic growth.
Can Horta and Gusmao succeed? Dom Rotheroe, who filmed in East Timor during the struggle for independence, has been back to find out for People & Power.
This episode of People & Power aired from Wednesday, 15 April, 2009.
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