Timor-Leste (East Timor) appears to have put the crisis of 2006 behind it. No major outbreaks of violence recurred. The security dividend translated into tangible economic progress. Added to that, the otherwise impoverished, half-island Southeast Asian nation has joined the holders of sovereign funds. Still, macro-development indicators do not give cause for unbridled optimism.

Three political arenas in East Timor are examined regarding the goal of consolidating peace: governance under Fretilin leadership, the issue of official languages, and the security sector. The article finds that inclusiveness, transparency, and efforts to minimize conflict are lacking in current policies and political processes.