[TimorLesteStudies] Journal article: Five Principles for the Management of Natural Resource Revenue: The Case ofTimor-Leste's Petroleum Revenue

[Jenny]

Five Principles for the Management of Natural Resource Revenue: The 
Case ofTimor-Leste's Petroleum Revenue
Jennifer Drysdale

Journal of Energy and Natural Resources Law
2008, Vol. 26, issue 1, p. 151-174

Abstract

Natural resource revenue management is a challenge for poor countries 
dependent on the exploitation of their natural resources to achieve 
sustainable development. A review of the literature reveals that five 
principles for the management of natural resource revenue recur in 
the discussion; responsibility for petroleum revenue management is 
defined, all natural resource revenue is received by the state, 
natural resource revenue is invested wisely, natural resource revenue 
is managed transparently, and some natural resource revenue benefits 
future generations. Countries that manage their natural resource 
revenue based on these five principles are more likely to avoid the 
problems associated with an influx of natural resource wealth and 
achieve sustainable development. Timor-Leste is used as a case to 
explore these five principles. Timor-Leste is dependent on its 
petroleum revenue, and established a Petroleum Fund Law with the aim 
of managing its wealth wisely, and for the benefit of future 
generations. But Timor-Leste has all the hallmarks of a country that 
would be unable to manage its natural resource revenue wisely. 
Timor-Leste's troubled history has rendered its state institutions 
weak and conflict, corruption and financial mismanagement exist. This 
paper explores whether the Government of Timor-Leste's plans to 
manage its petroleum revenue fulfil the five principles of natural 
resource revenue management.




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Visiting Fellow, Fenner School of Environment and Society
Moderator, Timor-Leste Studies Association List www.etstudies-aust.org
Mobile 0407 230 772
Email Jennifer.Drysdale at anu.edu.au
Personal Website http://cres.anu.edu.au/~jenster