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23 February, 2012 - 03:41
There is so much said about the adverse effects of extractive industries on social, economic, and political development in fragile states. However, in Timor-Leste, the truly ominous signs of the "oil curse" have not befallen the country.
As Bob Brown, the leader of Australian Greens Party, famously stated in 2003, "It's the one resource that can give East Timor the kick-start it needs."
In fact, since Timor-Leste started spending its oil windfalls in earnest five years ago, the poverty rate appears to have fallen by almost 10 percent, outbreaks of social conflict have all but stopped, and several state institutions have at least started to resemble their counterparts in developed countries.
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