Celebration and despair in E Timor

Jonathan Head BBC correspondent in Dili

The euphoria of last year's independence celebrations has well and truly left East Timor.

The first 12 months as an independent state have been very tough and, for many people, bitterly disappointing.

East Timor is still one of the world's poorest countries, a situation made worse by a sharp reduction in the number of United Nations staff, who helped fuel an artificial economy.

Eduardo Soares fought for East Timor's independence

Eduardo Soares, a former freedom fighter, says the independence he fought for is much harder than he expected.

"It is so difficult because bad stuff happens so easily," he said.

"I want to study, but the problem is how to start. There's nothing to start with. It's like a driver driving his car, with no direction."

The prospects for Eduardo's two young daughters, Victoria and Florbela, are little better.

Nearly every school in East Timor was destroyed four years ago. There are 45 pupils in his daughters' class, crammed into a makeshift classroom.

They are taught in Portuguese, a language they do not understand.

Their teachers are unpaid volunteers, who are nevertheless willing to help make life better for the next generation.

"For me, this is normal," said one teacher. "Things are bad and we do need help."

"But we must be patient. I'm happy to do this for the future of East Timor," she added.

Limited resources

The school itself - a gutted shell of a building - is symbolic of the lack of resources East Timor has to start building its new life.

The total destruction wrought by Indonesian soldiers in 1999 means the country still has little infrastructure.

East Timor's schools are lacking basic resources

And even when these schoolchildren do finish their rudimentary education, the harsh reality is that three out of four of them will not be able to find a job.

With unemployment so high, crime is rising fast and the newly formed police force and judicial system are ill-equipped to fight it.

Eduardo, however, is one of the lucky ones.

He has found a job with a security firm, with help from his former guerrilla comrades.

But there is little other work in this shattered country, and he knows he has been given a chance that many will never get.

East Timor is not a country without riches, though. There is oil off-shore, and maybe one day tourists will come to enjoy the country's natural beauty.

But first, its people must first recover from a quarter of a century of conflict.

Marking independence

On Tuesday morning, in the blinding sun, East Timor's new army and police force paraded in front of diplomats and government ministers to mark the first year of independence.

Eduardo Soares' life has been transformed

There were a few tears in the eyes of some of the Eduardo's former colleagues, the veteran guerrilla fighters, as the red, black and yellow national flag was raised.

At this low-key ceremony, President Xanana Gusmao acknowledged the frustration felt by many over the slow pace of development.

But he insisted that the country remained stable, and promised a better performance by the government.

While most people in East Timor say the last year has been hard, they still express pride in their young country's achievement at just having come this far.

And for Eduardo and his family, there is reason to celebrate.

He was arrested and tortured nine times by Indonesian soldiers during his fight for independence.

Now, living in an independent East Timor with a wife and daughters he never thought he would ever see, must seem like a small miracle.