Critical Notes on Crude Oil Mining as a Prime Mover of Timor Leste’s Economic: The Paradox of Abundance
1Manuel Coutinho Carmo Bucar Corte Real, 2Ida Ayu Nyoman Saskara, 3I Nyoman Mahaendra Yasa, 4Ni Nyoman Reni Suasih
1Student of Economics Doctoral Study Program, Faculty of Economics and Business, Udayana University, Jalan P.B. Sudirman, Denpasar, Indonesia
2Professor in Economics, Faculty of Economics and Business, Udayana University, Jalan P.B. Sudirman, Denpasar, Indonesia
3Associate Professor in Economics, Faculty of Economics and Business, Udayana University, Jalan P.B. Sudirman, Denpasar, Indonesia
4Lecturer in Economics, Faculty of Economics and Business, Udayana University, Jalan P.B. Sudirman, Denpasar, Indonesia
https://doi.org/10.47191/jefms/v7-i2-23
ABSTRACT:
After the international recognition of Timor-Leste's independence, the oil and gas sector has provided a very dominant contribution to the development of the economy and government. In fact, oil and natural gas revenues are expected to be a major determinant of the country's economic growth, although it is known that the final outcome will depend largely on the use of oil and gas revenues. The purpose of this critical note is to contribute critical thinking about the negative impact of the abundance of natural resources, especially crude oil, in Timor Leste, which continues to be the main source of the economy. While it is true that oil revenues are critical to achieving the goals set out in the Timor-Leste national development program, it is also true that oil revenues pose challenges to governance capacity, as international experience shows that countries are rich in natural resources (oil and gas). nature) often experience more waste and corruption than other countries. The negative effect of abundance on natural resources has become known as the "resource curse".
KEYWORDS:
paradox of abundance, crude oil, Timor Leste, prime mover of economic
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