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This diploma thesis elaborates on state-building in the form of a case study of East Timor. East Timor has hosted an international state-building intervention as a result of the lack of governance capacity. East Timor is not the first case of a failed state with implied international state-building, but applied transitional administration in this format is unique. The United Nations established UNTAET with a finite time period which has been prolonged twice since May 2002. This thesis examines international state-building and its linkage with local participation and ownership. The goal of the thesis is to determine whether the peace-building in East Timor was successful. It continues with the second research question regarding the main aspects of state-building which helped to enhance performance in governance and public administration areas. Using Fukuyama's theoretical background, this thesis builds a hypothesis on the notion, that aspects which helped enhance performance are those connected with local participation and ownership. The method of the research is process tracing between autumn 1999 to May 2002, when the independent state of Timor-Leste was established. Although UNTAET was successful in creating institutional and process bases in areas of governance and public administration, local...