Timor Leste told to manage wealth

Timor Leste told to manage wealth

WASHINGTON: Poverty-struck Timor Leste has made "commendable
progress" since wrenching its independence from Indonesia but
needs to do much more to manage its new-found energy wealth, the
IMF said on Monday.

The International Monetary Fund said its staff and the World
Bank had concluded a joint review last week of a National
Development Plan (NDP) presented by the Timor Leste government.

"Since regaining independence in 2002, Timor Leste has made
commendable progress by maintaining peace and stability, building
state institutions, and improving basic service delivery," IMF
deputy chief Takatoshi Kato said in a statement.

"Significant challenges remain, however, in addressing weak
capacity, accelerating growth and employment creation in the non-
oil economy, and ensuring the sound management of the country's
oil/gas resources," he said.

Kato said the government was right to focus in the NDP on
strengthening institutional capacity, stimulating job creation
through private investment and on managing its potential energy
wealth "responsibly and transparently".

Timor Leste, a former Portuguese colony, broke away from
Indonesia in May 2002 after a 24-year armed struggle.

Now the poorest nation in Asia, it has been holding protracted
talks with Australia to delineate a maritime boundary and carve
up oil and gas resources under the sea-bed, that are estimated to
be worth over US$30 billion.

The IMF official added that close cooperation between Prime
Minister Mari Alkatiri's administration and foreign donors will
"remain critical" to Timor Leste's immediate future. -- AFP