The seminar introduces a new book on the economy of East Timor. The book consists of two parts: a historical part telling the story of how today’s East Timor was created – from the very beginning to the moment of independence in 2002 — and a part that mixes a topical analysis of what we think are the most important economic challenges facing the country today with an account of the contemporary historical episodes that influence and are influenced by them. Hopefully, the mixture of history and economic analysis contributes to an understanding of the nature of the development challenge facing East Timor and its policymakers at the beginning of the twenty-first century: the challenge of employing an exhaustible natural resource to create a sustainable, diversified market economy that will allow East Timor to become a middle-income country where poverty is a thing of the past.