Timor-Leste’s Petroleum Fund, what future?

The Ministry of Finance, in collaboration with the Norwegian Petroleum Assistance Program, held a Petroleum Fund Management Seminar in Díli, from Monday 10^th to Tuesday 11^th May.
Members of Parliament, Government, civil society, students and media attended the Seminar, which had the purpose of starting a national dialogue on the best way to manage Timor-Leste’s petroleum wealth, making use of the international and national experts.
The main issues discussed were the petroleum’s impact on the domestic economy, investments in the international financial market and the consequences of different future investment strategy options for the Petroleum Fund in Timor-Leste.
For many developing countries petroleum has had an adverse impact on the domestic economy due to its characteristics. However, all speakers at the Seminar agreed that Timor-Leste has a started its management in the best way, having already established institutions and mechanisms to avoid such negative effects, often called “the petroleum curse”. Nevertheless, the Seminar also highlighted the importance of fiscal discipline, development of human capital and the need for patience in order to achieve the best outcomes in diversifying the economy.
The Seminar also focused on the Santiago Principles, which are Principles and Practices generally accepted by all Sovereign States, throughout the world, which possess petroleum wealth. The principles are important as to ensure sound management and highlights transparency as a key factor.  The Government of Timor-Leste has actively participated in the development of these principles that were adopted in Santiago in October 2008.
More information about the Seminar, including the presentations given by the international and nation experts are available at the Ministry of Finance’ website.