The Timorese and the Portuguese tried to help the country recover. But development was slow. The average annual growth rate between 1953 and 1962 was just 2%. Meanwhile the United Nations declared Timor-Leste a non-self governing territory under Portuguese administration. It was only then that Portugal tried seriously and systematically to develop Timor-Leste through three successive five-year plans

Portugal governed Timor-Leste with a combination of direct and indirect rule, managing the population as a whole through the traditional power structures rather than by using colonial civil servants. This left traditional Timorese society almost untouched.

In 1974, however, the ‘transition to democracy’ in Portugal had a sudden impact on all its colonies. The political climate in Portugal shifted to the left and for the first time the Timorese were given freedom to form their own political parties.

On August 11, 1975, the more conservative Timorese parties launched a coup in an attempt to seize power from the Portuguese and prevent the ascendancy of the left-wing Frente Revolucion‡ria do Timor Leste Independente (Fretilin). Clashes between the two main Timorese contenders escalated into violence resulting in more than 2,000 deaths. On November 28, 1975, Fretilin declared Timor-Leste as the Repœblica Democr‡tica de Timor Leste (RDTL). RDTL was recognized just by a few countries, mainly former Portuguese colonies, and was short-lived. Ten days later on December 7 1975 Indonesian troops invaded.