[4] As of 2011[update], 37.4% of civilians live below the international poverty line of $1.25 (in purchasing power parity terms) per day and 40% of the population is malnourished.
[2] Existence of poor governance, coupled with lack of accountability and transparency are reasons why Timor-Leste has been unable to break out from this poverty trap.
[5] "Without a clean and competent governmental institution to provide a stable business environment, Timor-Leste has failed to attract much foreign direct investment (FDI) which would help to improve the unemployment and poverty situations", as stated by Dionisio Da Cruz Pereira, a former staff of the United Nations and the World Bank group in Timor-Leste.
According to World Development Index, Timor-Leste receives approximately US$185 million in aid per annum, which accounts for 33% of its gross national income.
It is also working to enhance banking literacy in rural areas by strengthening microfinance institutions through the development of pro-poor products and services.