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Tough warning to newest nation

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A report on the future of East Timor by the World Bank has painted a bleak picture of a nation in danger of imploding as it copes with the twin pressures of poverty and corruption.

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The strongly worded assessment of the tiny state's prospects concludes that while it has performed better than other countries in the aftermath of conflict, its progress remains fragile.

'Establishing a well-functioning state will take years, if not decades,' the report says.

East Timor, which is the world's newest nation, became independent from Indonesia after decades of fighting and a 1999 referendum.

Australia, its southerly neighbour, helped bring stability to the country by sending a large contingent of peacekeeping troops to establish law and order, and by contributing generously to infrastructure and development projects.

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But six years later, major challenges remain, the World Bank concedes, acknowledging that the establishment of a functioning democracy would probably take decades.

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