Timor-Leste has the conditions and resources to invest in infrastructure and its population, and it must do so because it is a “rich country where there are too many poor people,” a World Bank official told Lusa.
World Bank Calls for Balanced Investment
Rodrigo Chaves, Director of the World Bank for Indonesia and Timor-Leste, made the remarks during an interview with Lusa in Dili:
“What we are trying to convince the Government is that the focus on the infrastructures side alone is not enough — the Government could and should invest more in people. Both physical and human capital are important if the country is able to respond to both needs with sufficient resources.”
Chaves confirmed the World Bank tripled its availability of subsidised financing for Timor-Leste’s infrastructure sector, from $30 million to $90 million USD.
A Petroleum Fund That Must Not Be Wasted
Timor-Leste holds a sovereign wealth fund equivalent to approximately 10 times its GDP — a situation Chaves described as a “luxury” and a “huge opportunity” that should not be squandered.
“This country is rich. I do not know many countries in the world that can say they have a fund that is 10 times its GDP.”
On the economy’s heavy dependence on state spending, Chaves urged pragmatism over ideology:
“There should be no religious obsession on this issue. It is important to look at the context of this country at this particular moment.”
He emphasised that the real question is how funds are allocated, not whether the state spends:
- Are quality roads being built fast enough?
- Is spending on education translating into children actually learning?
- Are feasibility studies being conducted before major investments?
The Child Stunting Crisis: A Mortgage on the Future
One of the most urgent challenges Chaves highlighted is child stunting, which affects more than half of Timorese children under five years of age.
“Studies show that in children with stunting up to the age of 5, their brains are already irreversibly damaged — they will not be able to learn as well as the rest of the children.”
The consequences extend directly to economic productivity:
“Half of the future workforce already faces challenges. This is an increasingly competitive world. The nature of the workforce has changed — muscle strength is less needed, and what we have in our heads is what makes people productive.”
A Convergence Approach Is Required
Tackling stunting requires simultaneous, community-level interventions across multiple sectors:
- Sanitation — ensuring access to clean water and hygiene infrastructure
- Nutrition — addressing food security and dietary quality
- Healthcare — expanding access to basic preventive and curative services
- Social behaviour change — shifting practices within communities
Chaves cited Indonesia as a model, noting the government set aside $14 billion over four years to combat stunting by mapping high-incidence areas and targeting resources to fill specific local gaps.
Investing in People to Close Historical Gaps
Chaves argued that closing development gaps built over centuries requires not just more money, but more effective use of existing resources.
“The government needs to ensure that basic public services for a healthy society are available where people live. And if those investments do not exist, that means money — but it may also be the solution to use what we have most effectively.”
He noted that Timor-Leste has a rare advantage: the resources and opportunity to plan its own future at a moment when the world is transforming across labour markets, energy systems, and technology.
World Bank’s Role and Commitment
The World Bank’s approach in Timor-Leste combines international experience with local knowledge. Despite the country’s political impasse at the time, Chaves acknowledged the Government’s ability to continue paying wages and maintaining basic services — and reaffirmed the institution’s willingness to support improvements in public management and administration.